Fortitude Re and IBM have entered into a substantial $450 million agreement aimed at revolutionizing the insurance group's life insurance policy servicing operations through the implementation of AI technology and other automation tools. These advancements are designed to provide an enhanced customer experience for policyholders and insurers.
The reinsurer has chosen IBM's subsidiary, IBM Insurance Solutions, to harness IBM's global capabilities to offer third-party administration (TPA) services for over 4 million policyholders. IBM will create and manage a tailored solution for administering life and annuity insurance policies, enhancing Fortitude Re's third-party administration operations. Simultaneously, this collaboration is expected to yield operational expense reductions.
This partnership also highlights the company’s ability to provide comprehensive reinsurance solutions, encompassing policy administration and related operational capabilities.
IBM will assist Fortitude Re in optimizing end-to-end processes within its insurance customer service operations, providing adaptability and scalability to seize new business growth opportunities through an open ecosystem approach. IBM Consulting will spearhead these efforts, incorporating AI for automation, hybrid cloud solutions, and main-frame-as-a-service technology.
“Combining Fortitude Re’s deep industry expertise with IBM’s technology leadership will enable us to deliver effective and efficient administration solutions as part of our bespoke solution design for our Life & Annuity customers,” Fortitude Re COO Sean Coyle said. “By partnering with IBM, Fortitude Re will be able to leverage AI technology, automation, and the latest in advanced data analytics to help continue delivering a high-quality service experience for the millions of insurance customers we service, all while reducing operational risk, improving efficiencies, and increasing our analytic capabilities.”
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