The London Market Association (LMA), in conjunction with the International Underwriting Association (IUA) has struck a deal with DXC Technology for the provision of bureau services that will save the Lloyd’s and London market £100mn over the next five years.
According to a statement on the transaction, the renegotiated contract, which was independently evaluated by specialist contract consultancy Aecus, DXC will optimise their service delivery, enabling cost reductions to the market in exchange for a fixed five-year deal, delivering savings that were not possible under the previous one year rolling contract. The cost savings will be apportioned on an 80 percent / 20 percent split between Lloyd’s managing agencies and those IUA companies that use the bureau.
DXC's relationship with the London insurance market dates back to the first agreements formed in 2001. At that time, Xchanging, now a DXC company, was contracted to provide the central utility business process and associated IT platform services through joint-venture partnerships formed with the IUA and the Corporation of Lloyd's. These partnerships remain the basis for delivery of services under the new agreement.
LMA CEO David Gittings said: ““It is heartening to see the LMA and IUA leading a cross market initiative to deliver a material cost reduction, at a time when the market’s cost base is under constant pressure. I’d like to thank DXC for making the commitment to our market and delivering valued services whilst also committing to guaranteeing the ongoing quality of that service.”
Dave Matcham, CEO of the IUA said: “This agreement will help our members process business more efficiently and is an important part of London’s drive to modernise its systems and provide a better service for clients.”