UK insurance giant Prudential has taken legal action against IT supplier Unisys and is seeking more than £12 million in damages after the alleged failure of an IT project, according to CW360, the on-line edition of Computer Weekly. Prudential claims that it has lost millions of pounds due to the supplier’s “failures and inabilities to perform its obligations.”

The project, called “Unite”, involved a system designed to enable Prudential sales agents in Europe to process orders for insurance policies and pensions via the internet in real time. It was based on the Unisure software package, supplied by Unisys.

It appears that Prudential terminated the software contract with its supplier in September 2001 due to “failures”. The insurance company now claims that it had to enact a contingency plan which involved part-manual processing of thousands of orders and that it was left with no option but to built new systems using in-house resources. Negotiations over a settlement between the two sides failed.

CW360.com reports that Prudential’s claim could total more than £15 million. A date for a hearing has not been set yet.

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