Equitable Life has awarded a major service contract to HCL Insurance Business Services. This will see HCL provide the Societys administration from March 2011. Policyholders stand to benefit from substantial cost savings long into the future.
Equitable Life undertook a thorough selection process to determine the right company to provide administrative services to the Society and its policyholders during run-off. Competitive proposals from leading providers were assessed and HCL was appointed as the company that demonstrated that it can best provide value, capability and service. Completion of the deal is a key step for the Societys new Chief Executive Chris Wiscarson in establishing his overall objective of re-creating value for policyholders.
Following the signing of the contract:
Transfer of administration is planned for March 2011
New agreement runs until the last policy ends expected to be at least 30 years
Cost savings of the order of 8m are expected in the first full year
Equitable Life can reduce its provision for future costs by an amount in excess of 100m
Lloyds Banking Group will continue fully to supply administrative services to Equitable Life until the end of the current contract in 2011.
Lloyds Banking Group has approximately 340 roles involved in Equitable Life work which will transfer to HCL in March 2011.
Following completion of the transfer, we anticipate that approximately 100 full time roles will remain at the Societys offices in Aylesbury and a small number will be relocated within HCLs other sites in the UK and India.
This is one of the most important decisions in the Societys history, says Chris Wiscarson, chief executive of Equitable Life. HCL has an impressive reputation and I am confident that they will provide great service and great value to policyholders. I want to help restore policyholders savings and this is an important step in that direction. I very much regret the concern, uncertainty and disruption these changes will cause for many people in Aylesbury. We will keep those people fully informed and supported over the next 15 months to help them plan for their future as effectively as possible.
D.C.