Novato, Calif. and Armonk, N.Y. – Allianz of America (AZOA), parent company of Allianz Life Insurance Company of North America, has signed a $330 million-, 7-1/2-year outsourcing agreement with IBM to handle information technology (IT) operations of the life insurer.
Armonk, N.Y.-based IBM already has a similar agreement in place to handle IT operations for Fireman’s Fund Insurance Co., which is also a subsidiary of AZOA.
This agreement represents a major step in Novato, Calif-based AZOA’s drive to achieve $150 million in improved operational savings within the next three years, the company says. Key business benefits of the IBM arrangement for infrastructure services are flexible capacity and a scaleable platform that can support future growth.
“The idea is to migrate the life insurance infrastructure onto the existing Fireman’s Fund infrastructure,” Oliver Bussmann, AZOA chief information officer told Insurance Networking News.
IBM will implement a single-service management framework that includes: data center services, storage management, back-up and recovery, and system software support; desk-side services including email and desk-side support; print and finish; process management; security monitoring; and cross-functional support.
By increasing efficiencies in AZOA’s two businesses, the consolidation is projected to save AZOA about 20% of their current annual IT infrastructure expenses. “It will bring us more price efficiency from a unit-cost perspective,” Bussmann says.
Sources: IBM and Allianz
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