Resolution establishes four year £140m strategic partnership with Capita
Following the review of policy administration announced last year, Resolution has established a strategic partnership with Capita Group, which contributes Resolution's customer service and IT functions to a jointly designed servicing model.
Through the partnership Resolution will invest £140m over 4 years in a consolidation of its separate customer services processes and information technology.
This additional investment produces an internal rate of return of 13%.
Over the last 3 years Resolution has grown to a group that serves some 7m policyholders and has been developing its strategic operating model designed to balance the aims of strong financial and risk management, excellent customer service, reduced cost that is variable with policy volumes and efficient scalability. Resolution has determined that a partnership which combines in-house delivery of control and oversight functions, asset management and strategic customer management, with outsource partners, for the delivery of customer service and IT functions to Resolution's specification, is the most effective way of delivering this model.
Resolution already successfully manages contracts with a number of outsource parties, including Capita, for the provision of services to its policyholders. Capita will deliver core aspects of customer servicing and policy administration to approximately 4.5m policyholders, future new business customers and IT services to Resolution.
The partnership commits Capita to offer reduced unit costs as new policies are brought into the model, giving Resolution certainty about future synergy benefits from new transactions.
