An F&G Annuities & Life subsidiary is suing an insurance coverage trade software program developer over a system substitute mission.
Constancy & Warranty Life Enterprise Providers stated in a criticism filed Could 30 within the U.S. District Courtroom for the District of New Jersey that it employed Majesco to assist it transfer to a brand new distribution administration system.
The system was supposed to assist F&G deal with agent contracting, fee calculations and different agent-related duties.
The Des Moines, Iowa-based firm hoped to get the system operating rapidly. As an alternative, F&G stated, it has labored with Majesco for greater than three years, spent $8.3 million and obtained no new functioning software program.
Representatives from Majesco weren’t instantly out there for remark.
The historical past: F&G signed a five-year subscription settlement with Majesco in September 2020. F&G agreed to pay the Morristown, New Jersey-based firm $800,000 per 12 months.
The businesses negotiated a brand new settlement, with an Aug. 7, 2023, “go dwell” date, in August 2022. The settlement set a cap of $2,285,193 on mission charges and bills.
The businesses agreed to a change request with a value cap of $1,852,600 in September 2022, a mission simplification change in October 2022 and one other change request in March 2023.
In Could 2023, Majesco advised F&G that the mission timeline must be prolonged to February 2024.