Accenture has agreed to acquire NaviSys, a privately held company that specializes in software solutions for the North American life insurance industry. The transaction is expected to close within the next 60 days.
The acquisition will give Accenture a life insurance platform with a full spectrum of processing capabilities–from front-office sales to back-office policy administration. Accenture will maintain and enhance NaviSys' existing services and leverage NaviSys software to develop new business process outsourcing (BPO) services for life insurers in North America.
The BPO services will be designed to help insurers end their dependence on legacy systems, reduce their cost structures, increase operating efficiencies, and refocus their efforts on designing and delivering new products, according to Accenture.
"The multitude of legacy core business systems in use at most carriers today is one of the most costly and problematic operational issues facing the North American life insurance industry," says David Hollander, senior executive in Accenture's insurance practice. "By acquiring NaviSys, we can help insurers overcome this problem with comprehensive solutions that enable them to reduce their cost structures, increase efficiency, and accelerate new product introductions."
NaviSys works with more than 50 insurance companies and insurance distributors worldwide, including 17 of the top 20 U.S. life insurers. The company will become part of Accenture's Financial Services operating group, which serves 44 of the top 50 insurance companies worldwide. BPO services will be delivered by Accenture Insurance Services, a unit specializing in insurance BPO.
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