Tata Consultancy Services is doubling down on its insurance platform which has already won more than $5 billion in business in the last two years and is looking at newer markets in Continental Europe to expand.
The Indian IT services leader’s mega insurance wins first came in the UK market, through its Diligenta unit, which initially focused on managing closed-book business pools in which no new insurance policies are issued. Managing a closed book typically means the contract will end after all the policies run out, though that can take years. TCS is now focusing on the open-book business, so that new policies constantly replenish old ones and the number of policies being managed continues to grow.
Earlier this week, TCS expanded its contract with Phoenix Group, a long-term client, to include openbook policies. The deal expansion is worth over $2 billion, an industry source said. In 2018, TCS won an over $2 billion deal with Trans-America in the United States.
“Currently, we have about 4 million open active policies; now with this deal (expanded Phoenix Group project) we will take it up to over 7.5 million policies. So, we are changing the nature of our business, we are changing the way we go to market,” Suresh
Muthuswami, President of TCS’ BFSI Platforms business, told media. TCS manages over 40 million policies worldwide. In addition to the UK and US, Muthuswami said TCS was also looking at newer markets to expand and to manage newer types of insurance policies.