Pensions giant AEGON has signed a £170 million, ten year outsourcing deal with Serco to provide it with a wide range of customer contact and support services.
Computerworld UK reported on the two companies being in talks over the deal back in July.
Serco will be managing all customer interactions with AEGON, from initial underwriting to claims management, through a combination of its cloud, internet telephony, and CRM capabilities.
It will be responsible for the administration of approximately 500,000 current and closed book policies in total.
"Our new partnership with Serco will add further impetus to our developing and highly successful protection business," adds Adrian Grace, UK CEO of AEGON.
"We're absolutely determined to deliver first-class customer service and to maximise our operational efficiency as we move forward with our progressive development plans for the UK business."
Anthony Miller, managing partner at analyst firm TechMarketView, has said that the deal highlights Serco's desire to make its name in the BPO market.
He said: "It would be a bit previous to postulate that Serco presents a 'clear and present danger' to insurance business process services market leaders Capita and TCS. However, Serco is on a mission to boost its presence in 'back-office BPO',"
"Having said that, Serco's first attempt to break into this market back in 2005 when it acquired UK BPO 'local hero', ITNET, was in our opinion all but an abject failure, so management still has much to prove that Serco can be a success outside of its 'blue collar' support services comfort (and sometimes discomfort!) zone."