Transamerica Awards TCS Multi-Year Contract for Third-party Administration

Tata Consultancy Services (TCS) has entered into an agreement with Transamerica, a leading provider of life insurance, retirement and investment solutions, to enable the transformation of administration of its U.S. insurance and annuity business lines.

The partnership enables Transamerica to rapidly enhance its digital capabilities, simplify the service of more than 10 million policies into a single integrated modern platform, and drive greater sustainable growth opportunities through superior customer experiences. The multi-year agreement is worth more than $2 billion in revenues, and is expected to be completed by the second quarter of 2018.

Mark Mullin, Transamerica president and CEO, said: “Transamerica continues to put our customers at the forefront of everything we do. I’m very excited to embark on this partnership with TCS, whose transformation and technology innovation capabilities will supplement our focus on improving our customers’ experience in a digitally enabled way.

"This supports meaningful growth in all business lines, including insurance and annuities, and advances our competitive positioning. TCS was carefully selected because of their significant, ongoing investments in technology and their expertise in the insurance and annuity industry.”

“TCS’ core competencies complement ours. TCS will provide valuable administration and quality customer service, and Transamerica will continue to engage with our customers, clients and advisors in the most meaningful ways to them by utilizing our digital engagement platforms and developing new solutions that help people save, protect, invest and retire.”

The partnership will enable the transformation of the administration of Transamerica’s life insurance, annuity, supplemental health insurance, and workplace voluntary benefits products. It will also support the company’s overall transition to a simplified, cloud-enabled platform for agile new product development, enhanced services, acquisitions, and strategic innovation investments.

This agreement is expected to lead to annual run-rate savings of approximately $70 million initially – growing to $100 million over time – for Transamerica. The majority is expected to benefit underlying earnings.

“TCS is helping to guide many of today’s leading companies through their business 4.0 journeys, in building their digital spines, becoming more agile, creating superior customer experiences, and driving exponential growth,” said Rajesh Gopinathan, CEO and MD of TCS. We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive U.S. capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS.”

TCS BaNCS has become a highly respected and successful digital platform in the European market for more than a decade, with more than 17 million policies under administration. It is a complete, open architecture solution with an integrated business rules engine, encompassing policy administration, data management, integrated imaging, and workflow administration. TCS has adapted the platform for the U.S. market to meet its operational and regulatory needs, both for today and in the future.