Outsourcing Administration and Development of the Core System of an Insurance Company

Profinit took over development and maintenance of the key system of an insurance company. The system is currently being implemented in several other European branches.

BNP Paribas Cardif (hereinafter referred to as Cardif) is an insurance company that has been operating on the Czech market since 1996. It offers insurance products (e.g. credit cards insurance or extended warranty insurance) under the brands of its local and international partners, which are mostly banks, leasing companies and companies providing hire purchases, personal loans or credit cards. Cardif currently administers more than 2.2 million insurance contracts on the Czech market with a total premium volume of more than CZK 2.4 billion.
Since entering the Czech market, Cardif used a custom developed core system to support its main activities and administer insurance products. The system was implemented in stand-alone versions also for the Slovak and Austrian branches of the insurance company. As the company’s demands were growing, cooperation with more partners was initiated and new products introduced, the capacity of the existing supplier of the core system was no longer sufficient for its further development.
“The rate of change implementation and further development of our core system didn’t correspond with the dynamic development of our company. That’s why we announced a tender for a new supplier. Profinit submitted the best offer, including a transparent cost model and guarantee of the system’s stable operation after the takeover,” Rudolf Šlesinger, Chief Operating Officer of Cardif, described the initial situation.
Unique Methodology Provided by Profinit
The main task for Profinit was to take over maintenance and development of the Cardif’s core system without any shutdown; merge development and operation of its versions for the Czech Republic, Slovakia and Austria in a shared services centre; and further develop the system’s functionalities according to current requirements of the branches.
During the project, Profinit applied its proven Application Management Outsourcing methodology, consisting of three successive stages:
1. Takeover of the core system from the existing supplier without any shutdown.
2. Implementation of the required changes, testing and launch of a new version of the system.
3. Complete administration of the system according to an SLA, including defined processes and transparent costs.

The key stage of taking over the core system under Profinit’s control had to be performed as fast as possible so that two systems provided by two different suppliers coexisted for the shortest possible time. Profinit managed to finish the first stage in five weeks and proceeded with extending the system with new features and products. Automated scripts for faster testing and launching of new versions were applied.

Shared Services Centre
Profinit moved development and administration of the Cardif’s core system to a shared services centre located in Prague. The Czech, Slovak and Austrian branches of the insurance company started using a new version of the core system, including their own data and settings. Nevertheless, each of the branches can demand specific new functionalities and implementation of new insurance products.
A team of up to twenty Profinit employees handles maintenance and development of the Cardif’s core system according to current requirements. Six large and eight smaller system updates have been provided and implemented without problems since summer 2013. The main benefits of the project of taking over the administration of the Cardif’s core system by Profinit include:
– Fast takeover of the core system from the previous supplier.
– Stabilization and setting of administration processes and further development of the system.
– Considerable acceleration and improvement of the implementation of new functionalities and products.
– Reduction of the risks associated with the core system’s operation, verified by a BNP Paribas audit.
– Transparent cost model for the insurance company’s branches using a shared services centre.

„We can safely take over even the administration of systems that were custom developed by other suppliers thanks to the sophisticated Application Management Outsourcing methodology. That makes us successful at developing solutions that would otherwise have to be lengthily and costly replaced by new ones,” explains Bohumír Zoubek, Products and Services Director of Profinit.

Ensuring Continuity and Further Development
Within the project of migrating the insurance company’s core system under the administration of Profinit, Cardif analysts gained a key know-how which enabled them to engage in its further development much more intensively. Possible migration of the core system to another supplier will be easier in the future. The set model of cooperation with Profinit enables Cardif to:
– respond to new opportunities and market demands flexibly
– plan the development of its core system better
– keep ahead of the competition

“We consider acceleration and improvement of the development of our core system as well as guarantee of its reliable operation the main benefits of cooperation with Profinit. The system migration project took place in a very short time and the results were evaluated very positively even by the BNP Paribas Head Office,” Rudolf Šlesinger, Chief Operating Officer of Cardif, evaluates the results of the project.

The Cardif’s core system implemented in its Prague shared services centre is currently under preparation to be implemented in several other European branches.