International technology giant SAP is gearing up for an aggressive push to win contracts within the broker software and insurer markets.

The German-based company, which employs 34,000 people in more than 50 countries, won the lucrative contract to provide systems to Lloyds TSB Insurance last month.

Capita, which handles claims for the likes of Norwich Union, is also a client.

SAP director Norman Black said the company is now looking to target large brokers like Marsh and Aon, and some of the major London market players with its quotation, administration and claims systems.

Black said: "There are no players of our size within the market but our proposition is winning us big contracts very quickly. We can cut claims costs by an average of 10%-15% and we will be putting that to brokers and insurers who are not currently serviced by existing companies."

He added: "In the current marketplace cutting claims costs is a big priority and we have the proven technology to be able to help insurance companies and brokers do that."

The entry of such a powerful multinational into the market will be of concern to existing players like Sectornet, Insurecom, Misys and Sirius.

Ian Gibbard, business development manager of Sectornet, said: "SAP is a big and successful company so they could be a threat.

"However, all of our staff come from the insurance industry and know the broker market inside out."

Gibbard warned: "Our clients like that level of specialisation and SAP may not be focused enough on insurance.

"To deliver quality at a reasonable price is going to prove very difficult for them."