Contract comparison is one of the most important roles for an insurance broker when negotiating with carriers. When soliciting quotes on behalf of clients (particularly in the commercial sector), brokers need to compare the coverage, terms, and exclusions of each contract.
The goal of contract comparison is to ensure a client gets the necessary coverage for the best possible price. In traditional manual reviews, brokers face key challenges, including:
- Dealing with complex contracts. Contracts are usually digitally scanned with OCR technology and may be shared with brokers in highly variable formats. For example, brokers may receive contracts for comparison as email attachments in a PDF format. Additionally, the language in commercial insurance contracts is complex. It is challenging enough to interpret the language related to coverage, terms, and exclusions, let alone to find similar terms and features across multiple contracts.
- Pressure for precision. Brokers must make accurate comparisons to assess whether a particular quote meets the coverage needs for a client at the best rate possible. Failure to do so could lead to gaps in protection and costly mistakes for the client.
- Need for efficiency. The more efficient the contract comparison is, the more capacity a broker has to get clients into coverage contracts.
The Role of Instabase AI Hub in Contract Comparison
Instabase AI Hub has a tremendous impact on the contract comparison process for brokers. Fueled by a large language model (LLM), Instabase AI Hub automates the contract comparison process to alleviate tedious manual review that leads to inefficiencies and inaccuracies.
Instabase AI Hub streamlines the review process based on its ability to accurately and efficiently handle complex, highly variable PDFs of contract documents, extract relevant information, and provide insights for informed decisions. Unlike deep learning models, large language models can quickly read, understand, and extract relevant data from complex documents with a high level of accuracy.
Expanding the Contract Comparison Use Case
There are a variety of ways in which the Instabase AI Hub can assist in the insurance contract comparison process. One critical area of assistance involves the use of AI Hub for question-and-answer interactions.
As brokers encounter questions while reviewing contracts, Instabase AI Hub is able to understand and quickly provide accurate answers. Questions can include broader comparisons of contract terms or more granular queries about the specific language used to describe covered events and exclusions.
As an example, much business continuity coverage was developed during the pandemic to address the impact of such issues on businesses. The language used by carriers to cover the pandemic is variable.
The following are examples of variable language used to describe pandemic-related coverage:
- “Coverage includes the following 5 (or any number) pandemic diseases.”
- “Coverage includes any known pandemics.”
- “Full pandemic coverage is included.”
These phrases all apply to pandemic coverage, but the specifics of what is covered in a pandemic situation vary widely depending on which of these phrases is used. To fully understand pandemic coverage across multiple policies once involved painstaking manual review. With Instabase AI Hub, on the other hand, a broker can make a natural language query to instantly zero in on the differences in pandemic coverage language among multiple policies with ease.
That is just one example of the power of large language models. A manual review of each such instance where there is variance in the language of key coverage terms is tedious. Humans can make mistakes or oversights, and it takes time to sift through complex documents to find comparable language. AI Hub can field questions about these term comparisons and offer strong insight to simplify the broker’s job.
Benefits of Using AI Hub for Contract Comparison
The following are the key benefits of using AI Hub for automated comparison:
- Improved efficiency. The burden on brokers to speed through a high volume of contract reviews is eliminated with AI Hub. Its LLM learns the contracts and terms on the spot and quickly extracts the relevant data.
- Optimized accuracy. AI Hub isn’t prone to errors and oversights like the human brain. It recognizes the language in each contract and effectively interprets the nuances that delineate one contract’s provisions from another.
- Better document handling. Complex, variable insurance contracts are no problem for AI Hub. It can dramatically increase your operational capacity and customer service.
Instabase AI Hub: The Future of Contract Comparison Is Now
Instabase is transforming the way brokers review insurance contracts. The foundational LLM does the heavy lifting by quickly finding and interpreting the data relevant to a broker’s query. You can ask questions of Instabase AI Hub via chat, and it will respond with the relevant insights you need to make the best decision for your client.
Explore Instabase AI Hub today and see how it can streamline your contract comparison process!