Virginia-based Computer Sciences Corp. (CSC) announced that it has inked a licensing agreement with New Orleans, Los Angeles based Pan-American Life Insurance Company. Financial terms of the deal were not disclosed.
Under the agreement, Pan-America has licensed Computer Sciences’ Insurance Industry Data model (IIDM) version 3.0. This software consolidates various sources of information and presents those through logical representations.
Pan-American Life Insurance Group, which serves around half a million Americans with its 100 year old financial services, will deploy this model to cull information on the activities and productivity of various insurance agents or producers. The collected data will help the insurance carrier to chalk out strategic decisions regarding product development, distribution, risk management, business potency and financial performance. The solution will also help the company to develop a data mart for its producer, satisfying its intention to build a corporate program –– Know Your Producer. The data mart will provide a consolidated view of essential producer information from various sources.
Computer Sciences’ IIDM is a business intelligence solution in its Insurance Optics product suite. The company’s insurance products are in hot demand of late. IIDM is the answer for insurers penetrating new markets and much in need of a common platform for enterprise data and support advanced reporting and predictive analytics. Computer Sciences’ insurance product suites provide an all-inclusive support to insurers, thereby boosting their profitability.
In the past few months, Computer Sciences has witnessed a series of insurance deals, which is the evidence of the efficacy and popularity of its products. In May, the company introduced a new cloud-based business process service. We expect this new service to attract more deals from the insurance sector.
However, Computer Sciences’ fourth quarter 2011 results were mediocre due to a delay in the NHS contract. We are also concerned about intense competition in the IT and cloud computing space from both small and big players such as Accenture plc (ACN) and Hewlett-Packard Company (HPQ). Moreover, fewer government deals due to regulatory spending cuts are making matters worse for Computer Sciences.
Currently, Computer Sciences has a Zacks Rank of #4, implying a short-term Sell recommendation.
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