Enhanced profitability for insurers by reducing administration and claims costs, is among the promises of the new Lloyd’s of London software tool designed to improve the quality of insurance contract review.
Called “Contract Confidence,” the tool runs checks against 1,400 open market rules using advanced search techniques to scan insurance contracts. Now available for subscription, the scalable tool was developed by Lloyd’s in partnership with the Lloyd’s Market Association and the likes of Brit and Liberty Specialty Markets.
Contract Confidence comes pre-populated with the full set of clauses from the recently launched Lloyd’s Wordings Repository and also offers the functionality for underwriters to set their own rules.
For policyholders, the new tool will mean fewer disputes, faster claims resolution, and lower policy costs. Lloyd’s said Contract Confidence will bring about these benefits by creating more right-first time contracts.
“We wanted to build a tool that delivered precisely to the unique requirements of the Lloyd’s market,” explained Lloyd’s director of performance management Jon Hancock, who is the executive sponsor of Contract Confidence. “That’s why we’ve worked with four Lloyd’s managing agents throughout the build process of Contract Confidence.
“What we have ended up with is a solution that will greatly improve the contract certainty for customers and reduce costs for underwriters. This is a great example of Lloyd’s and market participants working together to leverage technology, reduce unnecessary costs, and deliver better outcomes for customers.”