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The insurer hopes to increase productivity through launching more - and better targeted - direct marketing campaigns.
"It's a very sophisticated and powerful tool," said Alison Newman, marketing manager at Cornhill Direct. "This will put us, if not at the very forefront of the market, very close to it."
However, she admitted that it was not a full-blown customer relationship management system.
Newman said Cornhill Direct expects the time taken to plan and launch a campaign to fall from three months to six weeks, with the time taken to identify target customers falling from four weeks to four days.
Return on investment will be achieved through adding business benefit rather than from reducing costs, she said.
The system, which is due to go live in November, was designed and will be hosted and managed by IT supplier Identex. Cornhill staff will access the system using thin-client links via the Web.
Newman said having a central repository for its customer data and marketing communications will help the company to gain a holistic view of its data. Previously this information was held in databases in two separate marketing departments based in different locations.