For teams within insurance organizations, managing contracts effectively can be a daunting task. Between vendor agreements, broker agreements, and reinsurance agreements, insurers’ contract ecosystems are as wide-ranging as they are complex.

Leveraging contract lifecycle management (CLM) solutions to unlock contract data can drive a new level of efficiency while ensuring compliance with internal policies and always-changing regulation. 

In this blog, we’ll explore how CLM technology can transform contract management for insurance companies.

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‍The Challenge of Contract Management in Insurance

Insurance organizations handle a vast array of contracts, from policyholder agreements to vendor contracts and regulatory documents. Managing these contracts manually or with outdated systems can lead to inefficiencies, compliance risks, and missed opportunities. 

In-house attorneys often find themselves bogged down with administrative tasks, leaving less time for strategic legal work. Business teams’ expectations are often misaligned with this reality because they face pressure to ink the deal.

This is where a robust CLM solution comes into play.

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‍Centralized Contract Repository for Easy Access

One of the key benefits of a CLM solution is the ability to centralize all contracts in a single, searchable repository. 

This critical step gives in-house attorneys quick access to historical contracts and in-flight agreements across the organization, for efficient retrieval and review. No more sending follow-up emails or sifting through disparate systems—everything you need is at your fingertips.

With a system like Evisort, users can upload, store, and organize contracts in a secure, cloud-based repository. Evisort will ingest and process up to 450,000 contracts per day, automatically extracting key data that matters to your organization. 

Once contracts are ingested, advanced search functionalities enable attorneys and their business counterparts to find specific clauses, terms, or agreements within seconds, saving valuable time and effort.

By opening up self-service search for business teams (with guardrails as needed), the business gets quick answers and the legal department immediately lightens up its ticket queue. 

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‍Clear Visibility into All Contract Terms

It’s not just about having all of your contracts in one place. 

It’s about knowing what’s in your contracts without every inquiry becoming a full-on initiative.

It’s about agility. What if you had a data breach and had to quickly survey which customers you’d need to notify “promptly”? Or within 24 hours? Or within 72? Do you have quick access to the answer?

Or what if your executive team needed a quick summary of the aggregate limits in all of your North American reinsurance agreements?  

With Evisort’s Document X-Ray™ you can build custom AI models in minutes to track any terms of interest in all or a subset of your agreements. Regulatory language, financial terms, legal clauses—truly any term of interest that matters to you. 

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Once you start tracking a particular term, Evisort’s customizable dashboards and reporting give you all the visibility you need to take action.

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‍Automation of Contract Processes

Automation is a game-changer for managing contracts in flight. 

CLM solutions can automate routine tasks such as contract creation, approval workflows, and renewal notifications. This automation reduces the risk of human error and ensures that contracts move through their lifecycle seamlessly.

Consider the contract approval process: With a CLM solution, attorneys can set up predefined workflows that automatically route contracts to the appropriate stakeholders for review and approval. Automated reminders and notifications ensure that deadlines are met, and nothing falls through the cracks.

And with Evisort’s robust workflow AI, you can automate processes like redlining and clause creation to move contracts along even faster.

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Enhanced Compliance and Risk Management

Compliance is a critical concern for insurance organizations, given the stringent regulatory environment they operate in. 

CLM solutions help mitigate compliance risks by providing tools for proactive contract management. Features like automated term tracking, contract templates with guardrails, and audit logs ensure that contracts adhere to legal and industry standards.

And with a tool like Evisort, you can be nimble when a new regulation requires prompt attention to your contracts. 

For example, as of the date of this writing financial services organizations that do business in Europe have about five months to comply with the EU’s Digital Operational Resilience Act (DORA). This extensive regulation will require organizations to categorize vendor agreements as “critical or important” or “not critical or important”. 

With a tool like Evisort, you can track which contracts fall into which category – and whether they have mandatory DORA contract provisions – with ease.

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Data-Driven Insights for Strategic Decision-Making

Unlocking contract data provides valuable insights that can drive strategic decision-making. CLM solutions offer analytics and reporting tools that help attorneys and other stakeholders understand contract performance, identify trends, and make informed decisions.

By analyzing contract data, insurance organizations can identify patterns, such as frequently negotiated terms or common causes of contract disputes. These insights enable attorneys to negotiate more favorable terms, streamline processes, and mitigate risks.

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‍Real-World Example: Global Specialty Insurance Organization

To illustrate the impact of CLM solutions, let's consider a real-world example from a global specialty insurance organization. 

With a lean in-house legal team, the organization faced significant challenges in managing compliance across a high volume of contracts spread across 14 operating countries. Their manual contract processes were time-consuming, error-prone, and led to compliance risks and inefficiencies.

By adopting Evisort, the organization was able to centralize its contracts into a single, searchable repository in short order. In doing so, they streamlined access to contract data and automated workflows, which significantly reduced the manual effort involved in contract management. Evisort's AI-powered platform provided valuable insights from contract data, allowing the organization to proactively manage compliance and mitigate risks.

As a result, the company achieved notable improvements in efficiency and compliance. Their Chief Product Counsel highlighted the transformative impact of Evisort's solution: “As an insurance company, it is critical for our global organization to conduct audits for compliance. Evisort’s AI allows us to accomplish these projects in a matter of minutes instead of months.”

The take-away: By leveraging Evisort's CLM technology, insurers can streamline their contract management processes, reduce compliance risks, and enable their legal team to focus on strategic initiatives.

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‍Conclusion

Insurance organizations face unique challenges in managing contracts and ensuring compliance. By leveraging a CLM solution to unlock contract data, attorneys can drive efficiency, mitigate risks, and make more informed decisions. 

Centralized repositories, automation, enhanced compliance features, and data-driven insights are just a few of the ways CLM technology can transform contract management.

Evisort is committed to helping insurance organizations unlock the full potential of their contract data. Our innovative CLM solution empowers in-house attorneys to focus on what matters most—things like driving strategic legal initiatives and ensuring regulatory compliance.

Want to learn more? Try Evisort on your own contracts to see the results for yourself.