IBM is building an “industry-first” data analytics platform onthe IBM Cloud to help insurance companies enhancetheir product mix and customer experience -- to better compete withInsureTechs.

Built in collaboration with MetLife and insurance technologysoftware provider Majesco, the IBM Insurance Platform will featurecognitive computing, data analytics and integration and securitycapabilities. Delivered as a service, the cloud-based platform willalso help insurers reduce IT infrastructure and maintenancecosts.

“Our industry platforms are designed in collaboration with ourclients and partners and intended to dramatically improvetraditional business models using deep industry expertise andadvanced technologies such as AI, cloud and blockchain,” saysBridget van Kralingen, senior vice president, IBM IndustryPlatforms.

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MetLife will be the first insurer to use the platform beginningwith its small business customers, enabling both customers andbrokers to have access to a broader selection of groupbenefits.

“We’re excited this platform will give our customers greateraccess to the benefits they need through a simpler, affordableexperience,” says Michel Khalaf, MetLife’s president of U.S.Business and EMEA.

IBM also plans to eventually add new capabilities to theplatform, including the ability to integrate with blockchainnetworks and the option to incorporate regulatory compliance dataand third-party software.

While IBM’s new platform has “a strong value proposition” andcan help traditional insurance companies better compete withInsureTechs like Lemonade, adoption may be slow because it’scloud-based, according to Business Insider.

“Research still shows that financial institutions in all sectorsare wary of using the cloud for core operations, largelydue to security concerns, which could dampen adoption,” BusinessInsider writes. “That said, with a heavyweight insurer like MetLifewilling to trial the platform, and the cloud being hosted by aplayer as trusted as IBM, it may be able to overcome suchreservations.”