Significant players in the insurance industry have increasingly been investigating outsourcing alternatives as a way to contain their costs and keep their energy and resources focused on their core skills and capabilities. In the highly competitive insurance industry, even a small price advantage can sometimes translate into greater market penetration, just as a reduction in an insurer’s expense ratio can generate greater profits. It is thus no surprise that a significant and growing number of business functions performed by insurance companies are being outsourced.
Mayer Brown assists clients with identifying and analyzing the key legal and business issues that must be addressed in deciding whether to outsource and in implementing any outsourcing decision. Our Technology Transactions practice has more than 50 lawyers throughout the Americas, Europe and Asia. We have achieved the highest ratings by legal ranking agencies such as Chambers and Legal 500, as well as by the International Association of Outsourcing Professionals (IAOP) and similar organizations.
- Human resources outsourcing. We represented a large property and casualty insurance company in outsourcing human resources functions.
- IT and business process sourcing. We represented a leading life and casualty insurer in connection with the implementation of an aggressive IT and business process sourcing strategy, including the following initiatives:
- The negotiation of broad framework agreements with two leading offshore service providers;
- The negotiation of a groundbreaking outsourcing arrangement for a comprehensive suite of insurance back-office services, including the development and implementation of a new service delivery platform and the maintenance and enhancement of the associated applications; and
- The renegotiation of key aspects of an existing IT infrastructure outsourcing arrangement.
- Back-office functions. We represented a leading insurance broker in connection with the outsourcing of finance and accounting, IT and various back-office functions.
- IT infrastructure. We represented a leading insurance broker in connection with the outsourcing of its US information technology infrastructure function. Under the agreement, the vendor will operate and manage US telecommunications and data networks and provide desktop support, related help desk services and various IT support functions.
- Hybrid and captive outsourcing. We represented a major life insurance company in connection with a hybrid outsourcing and captive offshoring deal.
- Outsourcing to India. We represented a major life insurance company in connection with the creation of a combination of corporate structures and service contracts for the performance of a variety of support services from India -- an outsourcing project that was one of the first of its kind and scale in the insurance industry.
- Web-based processing systems. We represented a major life insurance company in connection with the development of a web-based system for the submission and processing of provider claims and the ongoing operation and support of such system.
- Mortgage loan servicing. We represented a Fortune 100 insurance and annuity provider in connection with the outsourcing of mortgage loan servicing functions to an outside provider.
- License and servicing agreements. We represented a major insurance and annuity provider in connection with the negotiation of license and services arrangements with SunGard.