Re/insurer agrees $450m deal with IBM for IT solutions

Bermuda-based Fortitude Re has engaged computer giant IBM to design and manage a custom solution using artificial intelligence to manage its life and annuity policies.

Under the $450 million, ten-year agreement, IBM Insurance Solutions will provide insurance third-party administration (TPA) services on its behalf for over 4 million policyholders.

The companies said the IBM solution will help life and property casualty re/insurer Fortitude Re to bolster its third-party administration operations and further enhance its commitment to customer-centric service for policyholders and insurer clients, while reducing operational expenses.

IBM will support Fortitude Re in delivering end-to-end process optimization of their insurance customer service operations, providing flexibility and scalability to capitalize on new business growth opportunities with an open ecosystem approach, the companies said. IBM Consulting will lead these efforts, which will include AI for automation, hybrid cloud 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 and Annuity customers,” said Sean Coyle, Fortitude Re chief operating officer.

“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, said: “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 opportunity 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 customer experience while also pursuing growth and efficiency.”

In May, Fortitude Re signed a $28 billion agreement with life insurer Lincoln National to reinsure a significant portion of its universal life insurance and fixed annuity business.

In 2022, the company bought a subsidiary of US life insurer Prudential, including a $31 billion block of in force life insurance and annuity policies.

Tags: Fortitude Re life reinsurance annuity information technology Sean Coyle