IBM introduces new life insurance tool

It can take a very long time for a life insurance agent to calculate the risk of insuring a particular client.

There are many factors to take into consideration when an agent is deciding on a life insurance policy. Now, thanks to the power-company IBM, there is an easy solution to calculating risk.

An article featured on The Press Release Database entitled, “IBM debuts grid computing offering for life insurance industry: New actuarial grid to help clients manage risk and increase profitability,” on July 25, 2006 outlines the new system.

This new system will significantly reduce the time that life insurance professionals previously used to run complicated insurance risk assessment scenarios.

“Called IBM Grid and Grow for Actuarial Analysis, the offering combines IBM and IBM business partner and ISV technologies to help insurance clients improve financial risk and capital management, give a faster time to market with new products and gain a competitive advantage.”

Previously, to run these model scenarios, life insurance professionals were using outdated personal computer systems or other traditional arrangements. The article gives a good description of the problems with the old systems.

“Actuaries — basically risk mathematicians for the insurance industry — often perform calculations with simple personal computers or with basic, manually provisioned, distributed processing environments. The time and efficiency lost through these conventional methods costs the insurance industry millions of dollars a year.”

“Using the IBM actuarial solution, actuaries receive results much quicker making it possible for them to run more calculations and tune their models to improve accuracy. The ability to model more accurate, complex financial scenarios is key in gaining a competitive edge. It also helps meet regulatory compliance and ever increasing reporting demands.”

Not only will these new systems save a lot of money and be a lot more cost-effective than previous systems, but the new calculations will be a lot more accurate.

“IBM clients already using an early version of the solution are reporting an immediate payback in their investment. An internal IBM survey of customers using IBM grid solutions for the insurance industry showed as much as a 75% reduction in time spent manually scheduling jobs and a 97% reduction in job processing time.”

Customers of IBM in the life insurance industry are not just seeing small reductions in the amount of time spent on individual assignments, but huge reductions that could end up saving companies a lot of money each year.

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