Tech Firms In Outsourcing Coalition

Apple says the coalition is functioning as a policy administration systems integrator for life carriers. “But were integrating it on our nickel,” he adds, “and selling it to the client on an x dollars and cents basis for each new business case, and a policy maintenance fee–at 30% to 40% less than current costs” for administrative operations.

For a simple term policy, Apple explains, clients pay a $30 annual maintenance fee and $20 to put a new product into the environment. He adds that volume discounts will be offered.

According to Nimish Soni, CEO of ProcessMind, “employee overhead represents more than half of the IT operating costs to a company doing in-house processing. Outsourcing generally cuts that by more than 30%.”

He says Vive-Life eliminates the need for North American clients to keep investing in computer technology and process improvements, “because we become their surrogate operations and IT department.”

Apple says each company in the coalition will share in revenue from Vive-Life based on its contribution to a given client. Its a mix and match situation in which “clients are only charged for the pieces they use. “

“In effect, right now there are no systems requirements for Vive-Life,” he continues. “We will interface with the customer accounting system and handle all business processes. The customer focuses on his core competency, which is developing new products and underwriting.”

Apple adds that Vive-Life is targeted at smaller carriers “that cant take advantage of the same resources larger companies can. This is definitely aimed at home offices.”

Reproduced from National Underwriter Life & Health/Financial Services Edition, May 13, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.