Japan’s Fukoku Mutual Life Insurance to replace human employees with IBM’s Watson artificial intelligence, expects increased productivity

Briefing

Japan’s Fukoku Mutual Life Insurance to replace human employees with IBM's Watson artificial intelligence, expects increased productivity

April 4, 2017

Briefing

  • Insurance Jobs Displacement – Japanese insurance company Fukoku Mutual Life Insurance is replacing 34 employees with IBM’s Watson Explorer AI
  • Automated Insurance Payouts Calculator – Reads medical certificates and factors in hospital stays, medical histories, and surgical procedures to accurately calculate payouts to policyholders in less time
  • Productivity and ROI Increase – Expects productivity to increase 30% and sees return on investment in less than two years, with savings of ¥140 million ($1.24 million) annually
  • 2035 Automation Forecast – 2015 report by Nomura Research Institute asserts that nearly half of all jobs in Japan could be performed by robots by 2035
  • Other Companies – Dai-ichi Life Insurance also uses Watson to assess payments, while Japan Post Insurance is interested in leveraging similar technology

Accelerator

Market Disruption

Business Model and Practices

Business Model
and Practices

Sector

Financial Services, Information Technology

Organization

Dai-ichi Life Insurance Co. Ltd., Fukoku Mutual Life Insurance, International Business Machines Corp., Japan Post Insurance Co. Ltd.

Source

Original Publication Date

January 5, 2017

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