The VHI has signed a major multimillion euro contract with CGI Group to implement a new insurance administration system aimed at managing its 1.55 million customers as well as providing for future business growth.
CGI’s global insurance open solution (GIOS) is a modular solution capable of fully supporting the administration function for all forms of insurance products. Through use of the healthcare template, the insurance provider will gain access to specialist healthcare insurance functionality that is readily available within GIOS.
VHI Healthcare is currently migrating from its legacy systems to GIOS and, following extensive testing, is scheduled to go live on the new system early in 2004.
Michael Keaney, general manager for individual and corporate business and implementation programme manager at VHI Healthcare, commented: “VHI Healthcare’s goal is to significantly improve customer service by developing one single customer data source, and with GIOS information need only be entered once for our entire insurance administration business. GIOS is a highly functional solution that will help us to achieve considerable efficiency savings over time through the automation of administrative processes.”
Keaney continued: “GIOS has been developed specifically for the insurance industry and is easily customised, which is vital to us moving forward. The VHI Healthcare brand is strong and with GIOS we will be able to bring a new product range to market quicker than our previous legacy system allowed.”
VHI Healthcare provides for the health insurance needs of 1.55 million people – 41pc of the Irish population. Premium income generated to the year-end February 2002 exceeded €600m with claim payouts averaging more than €10m per week. The scheme is administered by a staff of 725 people countrywide. Administration cost ratios for VHI are regarded as among the lowest in the health insurance industry, typically around 8-9pc of premium income. The majority of members are insured through approximately 8,200 group membership schemes.
Gavin Chapman, senior vice-president and managing director at CGI Group (Europe) said: “This is an important contract win for CGI. We are delighted that one of Ireland’s most recognised brands is purchasing GIOS, which will deliver to VHI Healthcare a highly flexible and functional solution tailored to meet its specific needs. Our GIOS solution covers all lines of business and is rapidly becoming one of the leading insurance solutions in the industry.”
By John Kennedy