IBM and MetLife launch an insurance platform
IBM has announced that it is developing a cloud-based insurance platform, dubbed the IBM Insurance Platform, in collaboration with MetLife.
The insurer will be the first to trial the platform, with initial tests planned for its small business clients. Insurance software provider Majesco will be supplying some of the technology for the solution, which will be based on the IBM Cloud, to make processes including underwriting and claims processing more efficient.
The platform seems to be tackling a deep-rooted problem in the insurance industry.Like their counterparts in the banking industry, insurers are burdened with outdated IT systems that make modernization of any kind complex and expensive. This leaves insurers struggling to personalize their products, something customers increasingly expect. The platform seems designed to combat these issues: It will be provided as a service, minimizing insurers’ infrastructure costs, while its cognitive computing and data analytics tools will help insurers make better use of their large data troves to personalize their products and services.
Despite a strong value proposition, the solution’s use of the cloud may slow adoption.Incumbent insurers are increasingly being threatened by iterative insurtechs like Lemonade, which are seeing massive success at least partly due to their agile tech stacks. As such, a solution like IBM’s would seem to be in undoubtedly high demand. However, research still shows that financial institutions (FIs) in all sectors are wary of using the cloud for core operations, largely due to security concerns, which could dampen adoption. That said, with a heavyweight insurer like MetLife willing to trial the platform, and the cloud being hosted by a player as trusted as IBM, it may be able to overcome such reservations.
- Explains the structure and current state of the insurance market.
- Highlights areas where insurtechs can help legacy players modernize.
- Describes where insurtechs are competing with incumbents and how their models compare.
- Provides case studies of insurtechs.
- Outlines the legacy response.
- And much more.
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via Business Insider http://ift.tt/eKERsB