Northwestern Mutual, a 166-year-old financial services company based in Milwaukee, Wisconsin, has a purpose-driven mission: to free Americans from financial anxiety. While it once advertised itself as The Quiet Company, Northwestern Mutual has been on a journey to enhance its overall customer experience by becoming more client-centric. To achieve this, the organization has focused on artificial intelligence (AI) and data science.
In 2018, Northwestern Mutual partnered with Marquette University and the University of Wisconsin-Milwaukee to create the Northwestern Mutual Data Science Institute. This collaboration advances academic data science and technology learning while driving innovation for Northwestern Mutual in critical areas such as underwriting and AI-driven business automation. It also contributes to the formation of a technology ecosystem, positioning southeastern Wisconsin as a national hub for technology, research, and talent development.
Further cementing its commitment to AI and data science, Northwestern Mutual established a centralized data organization led by Chief Data Officer (CDO) Don Vu. Vu, who previously led data and analytics at both MLB Advanced Media and WeWork, has been instrumental in growing Northwestern Mutual’s data department. The company has implemented an enterprise data and analytics strategy that aligns closely with its goals as a major financial services organization.
One notable application of AI at Northwestern Mutual is in underwriting. Traditionally, assessing underwriting risk in the life insurance sector involved sending health professionals to potential clients’ homes for physical assessments. However, during the COVID-19 pandemic, home visits became impractical. Northwestern Mutual responded proactively by leveraging its AI strategy. By analyzing existing digital data such as lab results and medical records, the company accelerated underwriting decisions while maintaining high-quality risk assessment.
More Details About Northwestern Mutual
What is Northwestern Mutual’s approach to AI?
Northwestern Mutual embraces AI to enhance customer experience and improve business processes, such as underwriting and AI-driven business automation.
How does AI impact Northwestern Mutual’s underwriting process?
AI allows for faster decision-making by leveraging digital data like lab results and medical records, which speeds up the underwriting process.
What is the Northwestern Mutual Data Science Institute?
It’s a partnership with Marquette University and the University of Wisconsin-Milwaukee to advance data science and technology learning and innovation for Northwestern Mutual.
Can AI help me with financial planning at Northwestern Mutual?
Yes, AI is used to develop systems that recommend financial products to help clients achieve greater financial security.
What are some benefits of Northwestern Mutual’s AI strategies?
Benefits include improved customer service, efficient risk assessment, fraud detection, and better investment decision-making.
