Fortitude Re strikes $450m transformation deal with tech giant IBM
Bermuda-based multi-line reinsurer Fortitude Re has entered into a $450 million agreement with tech giant IBM to “transform” its life insurance policy servicing operations through the implementation of AI technology and other automation tools.
The partnership will see Fortitude Re leverage the global capabilities of IBM’s subsidiary, IBM Insurance Solutions, to provide insurance third-party administration (TPA) services on its behalf for over four million policyholders.
IBM will design and manage a custom, streamlined solution for administering life and annuity insurance policies that will help Fortitude Re with its third-party administration operations.
IBM will support Fortitude Re in delivering end-to-end process optimisation of their insurance customer service operations, providing flexibility and scalability to capitalise on new business growth opportunities with an open ecosystem approach. IBM Consulting will lead these efforts, which will include AI for automation, hybrid cloud, and main-frame-as-a-service technology.
Sean Coyle, Fortitude Re's chief operating officer, said: “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 and annuity customers. 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.”
Vijay Vijayasankar, managing partner financial services at IBM Consulting, commented: “We are excited about our latest collaboration with Fortitude Re to provide third-party administration for insurance and annuity policies. The insurance industry continues to be an important focus for IBM, with significant opportunities to apply our industry expertise and technologies to solve complex challenges facing insurers. We are committed to working hand-in-hand with Fortitude Re to enhance security and the customer experience while also pursuing growth and efficiency.”
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