Private sector
Life and pensions
“I was delighted with the transition to Capita in both the UK and India. In
particular, there was no disruption to service for AXA’s customers. Since
the transfer the service improvement delivered by Capita has been more rapid than
we expected.”
Robin Smith, Managing Director, Traditional Business, AXA Life
Market position
Life and pensions currently accounts for 18% of Group revenues.
Capita is the leading provider of outsourced life and pensions administration in
the UK and, according to industry analysts Ovum (June 2009), globally. The 25 million
policies that we administer represent around 22% of the total UK market. Our scale,
focus on customer service, continued investment in specialist technology and our
ability to offer a mixed onshore/offshore delivery model, make us a compelling choice
as an outsourcing partner.
While outsourcing in the life and pensions market has grown rapidly in the last
few years, there are still plenty of opportunities for growth. We estimate that
there are some 113 million life and pensions policies in force in the UK, of which
69-74 million have not yet been outsourced. In addition, first generation outsourcing
contracts struck in the early 2000s are now coming up for re-tender. Life and pensions
companies remain under competitive pressure and opportunities are expected to emerge
as financial organisations continue to restructure to focus on core activities and
consolidators resume their activity in the market.
- Wide recognition of the benefits of outsourcing in the industry, encouraging providers
to readdress their business models
- Declining new business in policies in the current economic climate, increasing the
pressure on providers to increase effectiveness and cut operating costs
- Regulatory changes such as those associated with the Retail Distribution Review,
driving demand for administrative systems that can respond swiftly and cost effectively
- More challenging market conditions, which put a premium on the ability to introduce
and distribute new products faster
- A renewed phase of consolidation in the industry, creating further outsourcing opportunities.