Accenture Plc. (ACN - Analyst Report), with its advanced solution, is helping the insurance company AXA Groupto improve its business process. Accenture implemented its Duck Creek Rating software at Quixa SpA. This has helped the Italian subsidiary of AXA improve product definition and deployment capabilities as well as the efficiency of its existing business management processes.
Quixa was on the lookout for a company that could help it with flexible product, rating and rules configuration capabilities while enhancing its integrated systems management capabilities. Accenture took 12-weeks to implement the Accenture Duck Creek Rating, which has improved Quixa’s business process and customer relations, thereby helping the insurance business adapt to changing market conditions.
With the solution, the AXA subsidiary will be able to improve the quality of its services to independent agents and clients in the insurance sector. This solution will automate the customer relationship management system. Thus, the system will require lesser staff for supervision and will lower operating costs.
In the recent past, Accenture has been able to win several deals from the insurance sector. Improvement in business volume from this sector has been fueled by the acquisitions of insurance solution provider outfits such as Duck Creek (Jul 2011) and avVenta (Oct 2012).
These acquisitions have provided Accenture with better technical knowledge about the functioning of the insurance business. ACN’s insurance clients are using this know-how to cater to the needs of their customers in changing market conditions, thereby improving their operational efficiency.
Insurance has been a major deal winner for Accenture over the last two years. However, we believe that the company’s strategy to win deals at any cost has changed and the focus is now on winning deals that offer higher margins. Moreover, the competition in the insurance sector is also increasing with players like IBM (IBM), Dell Inc. and Hewlett-Packard Co. (HPQ - Analyst Report) coming up with cost effective solutions for the insurance sector.
The companies have also started aggressive marketing to grab a chunk of the insurance market, with a special focus on the emerging markets. Thus, we believe that Accenture has to come up with innovative and customized solutions for its insurance customers to maintain its current position in the market.
Currently, Accenture has a Zacks Rank #3 (Hold).