Bermuda-based Fortitude Re has signed a $450m contract with tech giant IBM to optimise its life insurance policy servicing operations.
Under the ten-year agreement, the reinsurer will deploy IBM’s artificial intelligence (AI) technology and other automation tools to offer an enhanced experience for policyholders and insurers.
Fortitude Re has chosen IBM Insurance Solutions, a subsidiary of IBM, to utilise the worldwide expertise of IBM.
This approach aims to outsource insurance third-party administration (TPA) services for more than four million policyholders.
According to the deal, IBM will carry out the designing and handling of a tailored and optimised solution to manage life and annuity insurance policies.
It will be responsible for boosting Fortitude Re’s third-party administration activities, augmenting commitment to client-focused service for policyholders and insurers, and cutting operational costs.
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Through the partnership, Fortitude Re also intends to optimise the end-to-end insurance customer service operations and comprises efforts such as AI for automation, hybrid cloud and main-frame-as-a-service technology.
Fortitude Re chief operating officer Sean Coyle 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.”
In May 2023, Fortitude Re opened its new representative office in Tokyo, Japan.