Tuesday, March 12, 2013

Accenture Seals Insurance Deal - Zacks.com

Accenture plc ( ACN - Snapshot Report ) recently announced that it will be managing a claims processing system for United Fire Group Inc. along with its subsidiaries. Financial terms of the deal were kept confidential.

United Fire Group specializes in providing property and casualty (P&C) insurance, life insurance and annuities to roughly 43 U.S. states. The insurance carrier has been rated ?A? (i.e. Excellent) by A.M. Best Company, a credit rating firm focused on the banking and insurance sectors.

Per the contract, Accenture will offer its claims management software application (Accenture Claim Components), which will make the task of claim settlements easy for United Fire Group. Accenture Claim Components solution monitors every detail from the time the loss is reported to claim settlement and recovery by deploying various analytical tools to arrive at the settlement amount.

With the solution, the insurance carrier will be able to serve its independent agents and clients better. As the solution will automate the claims processing system, supervision and staff engagement for the system will be less, which will lower operating costs.

Accenture has been serving the insurance vertical for years. Continuous insurance deal wins underscore the efficacy and popularity of its services. With the acquisitions of Duck Creek (Jul 2011) and avVenta (Oct 2012), Accenture has enhanced its insurance platform, which is helping insurance carriers to adapt to changing market conditions and gauge future requirements, thereby enabling them to run high-performance businesses.

Accenture has been winning deals continually from the insurance sector. Though this is encouraging, we believe similar product offerings from the likes of Computer Sciences Corp. ( CSC - Analyst Report ) and International Business Machines Inc. ( IBM - Analyst Report ) are concerns.

Currently, Accenture has a Zacks Rank #4, (Sell). Investors can have a look at Guidewire Software Corp. ( GWRE - Snapshot Report ) , which has a Zacks Rank #2 (Buy) and is worth buying.

Source: http://www.zacks.com/stock/news/94439/accenture-seals-insurance-deal

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