Business Standard

With UK unit turnaround, TCS seeks to grow US insurance biz

- AYAN PRAMANIK & RAGHU KRISHNAN More on business-standard.com

Tata Consultanc­y Services (TCS) has said it has seen a “turnaround” in Diligenta’s fortunes, its UK business process subsidiary, with large wins in recent months, and has begun offering its services to insurance firms in the US, a larger market.

Diligenta was set up in 2005 to offer business process services in the life and pensions insurance industry in the UK. It administer­s closedbook pensions and annuities for insurers, a model where it gets initial revenue and slows down as policies get closed. Since its $2.2-billion deal in 2011 from the UK insurer, Friends Life, it struggled to get newer deals, prompting the company to place a new Chief Executive Officer Daniel Praveen in 2015.

In September, Diligenta won a 15-year deal with Scottish Widows, the life and pensions business of Lloyds Banking Group, which mandated taking over 1,000 people on its rolls and providing end-to-end policy administra­tion for over 4 million policy holders.

“The growth, what we expected, was lagging behind. We have announced two deals already; we are now processing more than 10 million insurance policies in UK alone and our ambition is to grow it to about 20-25 million policies as quickly as we can, and opportunit­y is there,” said N Ganapathy Subramania­m, chief operating officer at TCS in an interview last week.

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