IBM and Fortitude Re have announced a groundbreaking agreement worth $450 million aimed at revolutionizing Fortitude Re’s life insurance policy servicing operations through the integration of cutting-edge AI technology and automation tools. The collaborative effort seeks to establish an unparalleled customer experience for both policyholders and insurers within the industry.
Fortitude Re, a prominent player in the reinsurance sector, has chosen to partner with IBM’s subsidiary, IBM Insurance Solutions, to leverage IBM’s extensive global capabilities.
This strategic move entails outsourcing insurance third-party administration (TPA) services for over four million policyholders. IBM will be instrumental in the creation and management of a tailor-made solution for the administration of life and annuity insurance policies. This initiative is set to reinforce Fortitude Re’s third-party administration operations, intensify its commitment to customer-centric services, and concurrently achieve operational cost efficiencies.
Incorporating IBM’s technology and expertise aligns with Fortitude Re’s mission to offer comprehensive reinsurance solutions, encompassing policy administration and related operational capacities. Through this collaboration, IBM aims to optimize Fortitude Re’s insurance customer service operations comprehensively. The approach will encompass various aspects such as AI-driven automation, hybrid cloud utilization, and mainframe-as-a-service technology.
Sean Coyle, Chief Operating Officer of Fortitude Re, commented on the significance of this collaboration: “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 Group, with its management of $72 billion in insurance reserves and administration of over 4.5 million insurance policies, stands to benefit significantly from this transformative collaboration. The endeavor underscores both companies’ dedication to innovation and their commitment to elevating customer experiences within the insurance sector.