Canada Life has signed an agreement with IBM for insurance software applications that will be delivered on demand and paid for according to the volume of policies processed.
Canada Life is the first insurance company to opt for a "systems provider" contract - a new spin on capacity planning and IT outsourcing - which utilises IBM's insurance solutions centre and Genelco software.
IBM says its insurance solutions centre specialises in the design, development and management of software, enabling firms to realise estimated cost savings of 15 to 30 per cent and improve customer service levels.
Insurance firms can also benefit from services that consolidate and unify group, life and health administration, as well as core tasks such as underwriting, policy administration, claims adjudication, and customer relationship management.
Doron Cohen, senior vice president and chief information officer, Canada Life, says the deal will allow the firm to integrate new blocks of business without any disruption in customer service levels.
"Unlike IT outsourcing initiatives that focus primarily on driving down costs, Canada Life is adopting a flexible approach that allows it to rapidly adapt to market conditions," says Cohen.