Aspen Insurance Holdings, via its subsidiaries Aspen Insurance UK Services Limited, Aspen Insurance U.S Services Inc, and Aspen Bermuda Limited, has entered into a $65 million information technology agreement with Cognizant Worldwide to improve its operating efficiencies.
The agreement, effective from August 31, 2018 has an initial term period of five years from October 1, although Aspen has the right to extend the agreement for an additional two year term.
Cognizant is an information technology consulting firm that offers infrastructure services, business process services, analytics, quality engineering and assurance, and application services.
The $65 million sum will be paid to Cognizant during the course of the initial five-year term of the contract, although compensation may fluctuate based on Aspen’s actual use of Cognizant’s services.
Cognizant will progressively assume responsibility for certain minimum service levels during a phased transition period that will extend over nine months, and which will also see certain of Aspen’s employees become employees of Cognizant.
The agreement also contains customary termination provisions, as well as both general and specific liability caps which limit Aspen’s liability to a percentage of annual charges or a fixed cap.
Aspen may terminate the agreement with 90 days notice if, among other reasons, a material breach is not cured within a specified time, insolvency, persistent breaches, failure to meet key milestones, or material adverse change.
The company said the IT deal will “enable Aspen to deliver greater operating effectiveness and efficiencies.”
