Aviva to roll out BPM, continue £500m efficiency project

Insurer Aviva, the parent of Norwich Union, is set to implement business process management software from Lombardi.

The world’s fifth largest insurance group is going through an aggressive IT and process cost-cutting strategy, and said it wanted to make processes more efficient, having managed the processes manually until now.

Aviva, which posted an £885 million loss in 2008, is attempting to cut half a billion pounds worth of costs by 2010, partly by improving IT and using shared service centres.

In March, it signed a 10-year, £700 million outsourcing deal with EDS, with the aim of cutting 20 percent off its annual IT costs.

Aviva will use Lombardi’s hosted Blueprint software to map its processes, and as a collaboration tool. It will then use Lombardi Teamworks BPM software, which it will install on-premise, for designing, executing and improving processes.

Aviva already uses Teamworks for human resources processes relating to new and relocating employees. Those processes have become more efficient, it said, with better co-ordination between line managers, HR and IT. It uses Blueprint, a wiki-style tool that allows people to input comments, to map quality management process in its UK insurance business.

Toby Redshaw, chief information officer at Aviva, said BPM would be crucial to cutting costs. “I consider modern BPM to be one of a handful of breakthrough technologies that can have real short-term impact [on the bottom line].” He added that “over time, BPM will become the mainstream IT construction technology”.

In an interim financial statement this week, Aviva said it had outsourced the processing of 1.7 million UK life and pensions policies to Swiss Re, with further migration planned later this year, and had decommissioned 225 legacy systems. Global sales in the first quarter to 31 March rose to five percent £10.3 billion.

Copyright © 2009 IDG Communications, Inc.

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