Perot Systems Corporation (NYSE:PER) today announced that Erie Family Life Insurance Company, a member of Erie Insurance Group, providing life insurance and annuity products in ten states, has signed a multi-year policy administration contract with TAG, a Perot Systems company.
Terms of the agreement were not disclosed.
Under the contract, Perot Systems will consolidate Erie Family Life's four platforms to one by migrating all products to Perot Systems' LifeSys policy administration system, and will provide a broad range of policy issue and policy management services, for both active and closed policies, while Erie Family Life will retain sales service and support, claims adjudication, underwriting and actuarial responsibilities.
"Through Perot Systems' services, we expect to inject Erie Family Life with innovative approaches involving new technologies and processes that Erie Family Life cannot cost-effectively do on its own," said Mark Dombrowski, spokesperson for Erie Family Life.
This agreement is part of Erie Family Life's plan to boost its competitiveness in the life and annuity market, which includes enhancing its agent experience and continuing to ensure top-quality service for policyholders. The move is also expected to result in significant cost savings for Erie Family Life, which Dombrowski said the Company can pass along to its policyholders and prospects in the form of competitive pricing.
"With Perot Systems' scale, software platform, and processes, Erie Family Life can move faster and more efficiently. Our team also looks forward to helping make life better for Erie's Agents and customers," said Anurag Jain, president of Perot Systems' insurance and business process solutions group. "We're proud to demonstrate that our end-to-end life insurance processing capabilities can enable property and casualty companies to strengthen their life and annuity businesses with long-term, predictable costs and service levels."
Erie Family Life also plans to launch several new products throughout 2007, and will rely on Perot Systems to help launch those products quickly while also providing service and support to keep pace with the products' success.
Perot Systems provides third-party administrator (TPA) and BPO solutions, infrastructure outsourcing, and applications solutions to the life, annuity and health insurance markets.