Contracts are super important in insurance. In fact, insurance companies can somewhat be thought of as a brand, people, risk models, and a whole bunch of contracts. Contracts that take others’ risk, in exchange for money; reinsurance contracts that offload some of that risk; investment contracts related to the float; plus the standard suite of supplier, employment, real estate, and other contracts that most large enterprises hold. As such, Contracts AI can be useful for insurers in a few serious ways that are somewhat unique to insurance companies, as distinct from other large businesses.
Here are some insurance-specific Contracts AI use cases:
- Understand details of your own policies. Despite being such contracts-dependent businesses, insurance carriers often have big holes in their understanding of what their contracts say. Contracts AI can help carriers understand what their policies say, at scale.
- Commercial carriers. Commercial carriers often write bespoke (or somewhat bespoke) policies, but may not have visibility into where these bespoke policies are different. The huge number of bespoke policies written by large carriers can make it difficult to manually get at this information in an aggregate way, unless a carrier is careful to track relevant data points as policies get entered into. Contracts AI can help commercial carriers get a handle on what bespoke policies actually say, and so help these carriers understand their risk.
- Personal Insurers. Personal insurers sometimes have different policies written by different brokerages. Here again, carriers may not have a clear picture of the specifics of different policies written and can have a lot of data to sift through to get at this information. Contracts AI can help accelerate this process, enabling carriers to get at information they might have otherwise been a known unknown.
- Understand what competitor policies say: market benchmarking for product development. For insurance product development, it can be very useful for carriers to see how competitors phrase items in their policies. While it’s possible to do this manually, it can be slow and tedious work. Likely, this results in carriers examining less comparisons than they might if the work went faster. Contracts AI has been used to accelerate insurance product development work.