Project Will Enable Third-Largest French Insurer to Significantly Cut Costs
PARIS; June 13, 2002 – Groupama, France’s third-largest insurer, announced today that it has teamed with Accenture (NYSE: ACN), the world’s leading management consulting and technology services organization, to implement its IT transformation initiative designed to increase the efficiency of Groupama’s information systems and reduce overall expenses by EUR 150 million by 2007.
Together, Groupama and Accenture will build a single IT structure for all Groupama businesses. Initially, the two companies will focus on:
Aligning IT systems to better support Groupama’s strategy, which calls for increased focus on customer relationship management, sales operations, retail banking and back-office rationalization; Implementing IT systems management and governance in line with the Group’s strategic orientation;
- Updating IT processes and modernizing IT architecture;
Reducing IT costs by EUR 41 million in 2003 and by EUR 90 million in 2005.
The initiative comes at a time when consolidation and margin pressures in the insurance industry are prompting companies to increase their focus on cost reduction. A cost-efficient IT approach that supports sales, maximizes distribution channels and facilitates product development will enable Groupama to take advantage of existing opportunities and position it well for the future.
The agreement extends a three-year relationship between Groupama and Accenture. Among previous joint initiatives, the companies worked together to improve Groupama’s IT operations after Groupama acquired Group Gan in 1998. The initiative involved improving IT support for Group Gan’s core businesses, enhancing human resources management and improving cost efficiency.
"We chose Accenture because of the successful long-term collaboration we experienced during the IT transformation project conducted for GAN SI, their strong commitment and their experience in the insurance industry," said Daniel Blanchard, Groupama’s general manager of Insurance and Services in France. "These advantages will be especially useful in successfully carrying out this ambitious project and reaching our objectives, notably in terms of cost reductions."
"This latest collaboration with Groupama demonstrates Accenture’s commitment and ability to support clients’ transformation and value-creation projects over the long term," said Jean-François Rambicur an Accenture partner and Groupama project manager. "Our leadership in the European and French insurance industries enables us to offer capabilities that can benefit Groupama in critical areas of its evolution and to act as an innovative partner committed to value-creation. We will deploy our skills to help Groupama achieve its goals of a successful information system transformation project and setting a new standard of excellence in the industry."
Groupama ranks among the top three generalist groups on the French insurance market, with € 11,5 billion in premium income, shareholders’ equity of €4.1bn and assets under management of some €50bn The Group is ranked number one in life, accident and health insurance, local authority insurance and agricultural insurance, number two in property insurance, number three in transport insurance and number five in life insurance. It employs 32,500 people and offers its 8 million members and clients a full range of property and life insurance products via its two brands Groupama Assurances and GAN, as well as a range of banking and financial services that it plans to extend under its 2000-2005 strategy.
Accenture is the world’s leading management consulting and technology services organization. Through its network of businesses approach – in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies and other capabilities – Accenture delivers innovations that help clients across all industries quickly realize their visions. With more than 75,000 people in 47 countries, the company generated net revenues of $11.44 billion for the fiscal year ended August 31, 2001. Its home page is www.accenture.com.