Conseco Inc. announced yesterday that two insurance subsidiaries—Conseco Insurance Co. and Conseco Health Insurance Co.—will be merged into a third subsidiary, Washington National Insurance Co. (WNIC).
The company is cognizant of the fact this will incur extra IT costs. “Conseco’s plans to consolidate three of its insurance companies within Conseco Insurance Group will require a number of one-time expenses over the next year, including costs to update IT systems,” Russ Bostick, Conseco’s EVP of technology and operations, tells INN. “While this effort will build capital, simplify the structure of Conseco Insurance Group and generate roughly $2.5 million in annual savings, we anticipate having $8 million in expenses overall related to the consolidation. Within IT, we will dedicate staff to handle the more than 50 systems that will require some degree of change, with the majority of that work expected in our health systems and corporate systems.”
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