The changes mean the insurer is completely free of legacy systems
Lloyd’s motor insurer ERS has completed the £20m transformation of its IT system which means it no longer has any legacy systems.
The insurer is now using the ICE software, built by Quindell, to operate its systems - from policy administration to claims handling.
ERS chief executive Ian Parker said the improvements would enable the insurer to build and get products out to market quicker, be more flexible with pricing and avoid re-keying.
Previously, underwriters handled all broker enquiries, while the management of its 30-year old IT system was outsourced.
All the historic and current data has now been migrated to the new system.
Parker added the changes mean that brokers will be able to get to an underwriter quicker, who are now solely focused on writing risks.
Administrative and operational enquiries are now handled through the operations team and automated channel.
Parker said: “We were stuck with a massive legacy problem with old systems going back a long way, that were unwieldy to develop. You cannot be agile, and they are expensive to manage.
“[With the new system] we are aiming for a processing mechanism that enables us to respond efficiently and effectively, but also allows us to integrate brokers and customers processes into the value chain to make sure it is high service and low cost.
“Technology is absolutely critical to everything we do, from compliance, to commercial relationships with brokers, to finance - everything we do depends on applications and the infrastructure.”
Parker said the £20m investment to complete the IT transformation, demonstrated the commitment of private equity owner, Aquiline Capital Partners, to grow the business.
Chief operations officer Tim Yorke added: “It’s a big investment. But we expect to see a return on that, better than break even, in under three years. Designed properly and implemented, the benefits can grow very quickly.”
The IT transformation brings the insurer one step closer to completing the change programme it started in 2013, which included its rebrand and a tightening of underwriting appetite.
The final part is set to be complete in September when ERS undergoes a relocation of staff and departments. The insurer is planning to close its Brentwood headquarters, and shift it to London, where it currently has 30 staff.
Following the completion of its redundancy consultation, ERS will have 240 staff in London, while all group operational roles will be shifted to ERS’s operational centre in Swansea, where the employee count will increase to 398 from 230.