Great August For Transactor-But Legacy Providers React
Fareham, England, August 2004. During August 2004, TGSL's sales success continued with the award of two new Transactor contracts in the UK. One is for a new start personal lines call-centre and internet business, offering a range of innovative insurance products to the public via the direct channel, with additional volumes provided through affinity relationships. The other is for a scheme administration business offering niche products via retail outlets.
"Both of our August orders are again subject to non-disclosure agreements until live date," comments Ray Vincent (Managing Director, TGSL), "and the nervousness regarding publicity is a growing trend where intermediaries are migrating away from legacy providers. We have seen several examples recently where the incumbent supplier has reacted negatively to the news they have lost a client. In August, the trend worsened. In one instance, the supplier-a large legacy provider with no credible new system strategy-issued 90 days notice unless the broker concerned signed up for a further three year period. In another, the supplier gave a 90 day deadline to upgrade, or be switched off. No wonder our new clients are keeping things confidential."
TGSL's Australian operation also had a good month, with three confirmations of 'preferred supplier' status for Transactor. Two are for start-up internet ventures, and one for a scheme administration business offering specialised commercial products to sub-agents. Confirmation of some or all of these orders is expected in September.
Meanwhile, significant business volumes continued to arise from TGSL's installed Transactor base. Herts Insurance Consultants placed an order for TGSL's EcoMail product (see separate article). KwikFit Insurance Services placed a significant order for an infrastructure upgrade, TGSL's first server room hardware and third party application order, which includes ongoing server-side maintenance to a performance based Service Level Agreement ('SLA'). Meanwhile, Heath Lambert Insurance Services confirmed a Transactor 6.2 website migration project, which will take full advantage of TGSL's .Net re-engineering, once again underpinned by a performance related SLA.
"The final piece of good news in August was the confirmation that Premier Underwriting Limited has renewed its Facilities Management contract with TGSL for a Transactor solution with TGSL providing outsourced inbound/outbound EDI and data management," comments Ray Vincent (Managing Director, TGSL). "PUL has grown its business significantly over the past five years, and we have been working with them from the start. They have made a very successful business and Transactor is playing a significant role."