Our Business Case for Insurers
Core problems of document processes
Manual document processes in insurance are costly, inefficient, fragmented, and error-prone, posing significant compliance risks. Core and non-core insurance applications act as isolated silos, each managing policy documents independently. This leads to repetitive processes, inconsistencies, and duplication. Coordination between Legal/Underwriting and IT departments for updates adds further inefficiencies and delays. Additionally, the lack of holistic insight into clauses, obligations, risks, and critical data in contracts hampers a comprehensive understanding of risk exposure and decision-making. This results in poor management of legal, financial, and operational risks, leading to decreased productivity, higher costs, and slow, inaccurate reporting.
Use Cases for Insurance Professionals
COMPONENT LIBRARY FOR COMMERCIAL P&C INSURER
Client Challenge
As part of a technology transformation, a leading Commercial P&C Insurance company wanted to significantly reduce manual policy contract updating processes. By implementing a contract clause-component database for insurance policy contracts, the firm aims to combine all policy content (Wordings, Endorsements, Schedule) in one place to eliminate using unstructured and operationally static policy documents. In addition, to build a foundation for the future, they needed the clause-component database to address policy content management in a modular and granular fashion.
Shareforce solution
Shareforce ELCM solution provides the client with a clause-component database (insurance policy building-block library) that holds all policy content in one central location, where all content is controlled by the underwriting teams. Wordings, Endorsements and Schedules are generated from one place, creating structured data in the form of a single, dynamic, insurance contract. All legal content is managed, originated, automated, maintained and deployed at a granular level as individual components rather than managing it as an entire clause or document.
Impact
- Significant improvements in quality and uniformity of policy documents, contract construction and governance.
- Significant underwriting contract process efficiencies through automation.
- Unlocking all insurance policy contract data at its deepest level; reducing operational risk through policy contract risk analysis on an individual and portfolio basis.
RISK EXPOSURE EXTRACTION & MONITORING
Client Challenge
A Global Insurance company faced with a challenge to understand detailed risk exposure in their policy portfolios, wanted a robust, automated solution that could analyse policy documents and model coverages, and identify risk exposures on both individual and aggregate levels. Due to the fragmented nature of policy information documentation & storage, comprehensively understanding risk exposure was challenging. As policies get updated over time (i.e. variations in general terms, customer-specific endorsements), this adds to the difficulty of having a dynamically updated, accurate view of actual risk exposure across their portfolio. Without essential details and precise data fully embedded in their Policy Administration Systems, the company resorts to manual reconstruction of risk exposure, which can lead to over-reserving.
Shareforce Solution
Shareforce extracts all risks, risk objects, risk situations and event chains from each contract, including legacy documents or documents located across multiple systems/applications across the organization. Shareforce document ingestion supports the curation of Clause Library content from these documents, and enables the creation of structured data of full policy document content (Wordings, Endorsements & Schedule) for interpretation, analysis and risk management.
Impact
- Using our AI/NLP solutions, Shareforce extracts event risk exposure at both contract and portfolio levels, including the ontology of these contracts.
- Contract data analysis of every part of our client’s documents is possible. Event chains and risk situations are visualized in easy-to-navigate dashboards.
- Our client connects to our platform to use the event chains and ontologies as input in their own Business Intelligence tools and to support risk monitoring at both contract and portfolio levels.
THIRD-PARTY POLICY PROPOSAL COMPARISON
Client Challenge
A global Speciality Risk Insurer was looking for an automated solution to evaluate policy proposals submitted by their clients or brokers. To determine alignment with internal underwriting guidelines and assessing how its risk exposure might diverge from standard clauses, the solution needs to be integrated with a clause-component database (“clause library”) that holds all their standard clauses and, as additional requirement, enables contract generation from structured data.
Shareforce Solution
Provisioning a contract clause-component database (policy building-block library) that holds all policy content in one central location. All standard clauses for policy Wordings, Endorsements and Schedules are originated, automated, maintained and deployed from one place. Bespoke, complex insurance policies are created by using the Automated Document Creation solution using standard Templates. The clause-component database, Templates and the creation of policies based on templates creates a Reference Data Set which can be used to analyse and compare third party documents.
Shareforce document comparison features provide a quick topic-by-topic comparison of AXA standard/reference Clauses and the corresponding client or broker policy wording.
Impact
- A solution that enables significantly faster comparison & analysis of client or broker contracts comparing them with vs in-house standard insurance policy contract wording, detecting content and context.
- Large reduction of time spent manually assessing third party documents.
- Underwriting & contract creation staff save up to 80% time in drafting legal documents with Shareforce Automated Document Creation solution. Shareforce enables our client to generate tailor-made, complex documents faster by using their ‘automated’ contract building blocks that are available in their clause-component databases (“clause library”).
DATA REFERENCE SET & POLICY MIGRATION
Client Challenge
A Multinational Life Insurance client has a major challenge migrating old policies to new policy administration systems. The only way this was historically possible was via manual policy comparisons, which was not a commercially viable route and would take many years to complete.
Shareforce Solution
Using our policy document ingestion tools, cross sections of legacy contracts are imported in our platform, where contract data is auto-structured and organised. Our client’s policy content subject matter experts select and curate content supported by Shareforce AI/NLP features to build a clause-component database and policy contract Templates in an iterative process. This creates a Reference Data Set, which is refined with additional legacy contract content by utilising the same process. By importing legacy policies and using the Reference Data Set to match these legacy policies to their relevant product Template, reconstructed policies are created and used to determine equivalence with the original policy. Large scale policy matching and comparison is utilized for efficient policy migration purposes.
Impact
- Newly created policy Templates are used to match and compare legacy contracts, thereby enormously speeding up the policy migration project.
- Using leading-edge contract structure innovation and Shareforce AI/NLP capabilities offers policy migration options that weren’t commercially viable before.
- Additional benefit: Client can use the Clause Library and Templates going forward to automate generation of new policy contracts
Shareforce offers:
Increased Productivity
Turn-key ‘single source of truth’ Legal Content Management solution for each underwriter and insurance document. Implement one, firm-wide, exhaustive clause-component database for all countries, departments (underwriting, policy administration, claims processing) and systems (PAS, underwriters workbench), that becomes the catalyst for all insurance contracts. Shareforce No-code Automated Document Creation offers quick, safe and flexible drafting in MS Word.
Lower IT costs
Insurers’ lawyers or senior underwriters have full control over the clause-component database. Policy content is originated, automated, maintained and deployed much faster throughout a firm, without the need for IT staff. Avoid delays, reduce the number of applications needed, and offer underwriting and contract staff the broadest flexibility.
Reduced regulatory costs & reduced risk of fines
Update and renew contracts securely and efficiently with our workflow tools. Comply swiftly with the ever-growing regulations that the industry faces. Improve contract governance and decrease regulatory risk and costs.
Insights from AI/NLP Contract Data Analysis
Shareforce is solving a crucial industry challenge: combining legal document content (Wordings, Schedules, Endorsements), data and variables for interpretation, analysis and risk management. We enable you to build policies, based on granular building blocks, digitally from inception. As a result, contract data analysis of every part of your documents is possible, all visualized in easy-to-navigate dashboards.
Jasper Boersma
Chief Revenue Officer (CRO)
For questions, please contact me directly:
E. jasper.boersma@shareforcelegal.com
Or reach out to us via our contact form.