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Testing the merit of the Promina merger

29 February 2008 5:23PM
One rhetorical aim of Suncorp's investor presentation yesterday may have been to provide insight into the program for the integration of the Promina business. Suncorp bought control of its insurance rival a year ago.The management team selected to help the CEO and CFO pitch the highlights of the integration and "change" programs at the company didn't provide much insight, though. The exception to this was the chief information officer, Jeff Smith. Smith, who managed Telstra's technology in the early 2000s, inherited a difficult assignment when he joined the financier less than a year ago.For example, contrary to management rhetoric at the time the firm never did do much to integrate the technology platforms of GIO with those of Suncorp when the latter bought the former in 2001.Smith's approach, he explained yesterday, was to focus on a few areas with the largest business outcomes.These were, he said, claims management, pricing and analytics.Suncorp had, Smith said, "a number of great assets internally". He cited "a new claims system technical solution" (without being more specific) introduced into the Suncorp and GIO home insurance businesses in June last year and since updated through four more releases and subsequently introduced in the RACQ Insurance business.Promina's two data centres have been (or are being) closed and consolidated into Suncorp's data centres. One aspect of the technology management Smith said Suncorp was getting much better at was testing, which he said could often consume as much as 60 per cent of project budgets.He said in some banking projects the firm cut testing time from 18 days to three days and predicted this would be cut to only one day.One consequence is that instead of quarterly releases of upgrades to core banking software these were now feasible every six weeks.

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