Lloyd’s Contract Confidence has been built with the market, for the market.
We’ve made it easier for the market to review the insurance contracts they write and issue on a day-to-day basis. Lloyd's new system (Contract Confidence) uses advanced search techniques to scan contracts and check for errors and discrepancies, which significantly reduces the time underwriters, management and risk/compliance teams spend manually checking contracts.
Backed by 250 hours of product development with underwriters and wordings specialists, Contract Confidence significantly reduces the risk of regulatory fines, independent and peer review costs and unintended coverage and claims disputes.
All Lloyd’s managing agents are responsible for ensuring that Lloyd's contract quality requirements are met when issuing insurance contracts. Lloyd's brokers also have an interest in ensuring that their document preparation and placement processes support compliance requirements and reduce administration and claims costs.
Contract confidence simplifies this process and creates time efficiencies for underwriters and brokers to focus on delivering a better service for clients and ensuring greater contract certainty. Some of the key features of the system are outlined below:
Fast, automated checks to flag potential changes or errors in contracts, with an 80% reduction in false alerts compared to the market leading product.
Quality assurance checking
Improve compliance efficiencies by running Lloyd’s pre-bind quality assurance checks in the application.
Promote best practice with checks against Lloyd’s revamped Wordings Repository or managing agent approved clause libraries.
Risk appetite flagging
Create custom rules to flag documents/wordings that conflict with your own risk appetites or underwriting strategies.
Costs associated to contracts can occur for several reasons:
- Claims paid due to poorly drafted wording
- Legal costs involved in defending ambiguous wordings
- Rectification costs on wordings and re-issuance of documentation
- Impact on brand and lost business
- Potential fines/compensation
- Operational risk and cost through claims leakage
Lloyd’s new tool, Contract Confidence will greatly improve contract certainty and help to mitigate the risk of all of the above, within a single application.
We wanted to build a tool that delivered precisely to the unique requirements of the Lloyd’s market. That’s why we’ve worked with four managing agents and the LMA throughout the build process of Contract Confidence.
- Axa XL
Contract Confidence is scalable and has been developed to accommodate the changing risk appetites of the Lloyd’s market. The tool is available for subscription from today.