ClauseMatch moves to InsurTech from RegTech designing policy management pilot at the Lloyd’s Lab
ClauseMatch, an award-winning software technology company that enables financial institutions to comply with their internal corporate governance documentation (such as standards, procedures, controls) has presented the results of its pilot project as part of Lloyd’s Lab second cohort.
The pilot was created in collaboration with four mentor firms from the Lloyd’s market taking part in the Lloyd’s Lab: Argo Insurance, AXA XL, Barbican, and QBE Insurance.
The in-depth analysis into the “current state” of the Lloyd’s market regarding corporate governance, risk management and regulatory compliance across the insurance industry found the processes are typically manual and paper-based. The goal of the pilot during the 10-week Lloyd’s Lab programme was to use state-of-art technology to achieve significant cost reductions in the areas of risks and compliance, as well as improve corporate governance and oversight.
- Reduced the time it took to refresh corporate policies and procedures, to ensure all documentation is up-to-date
- Automatically cascaded regulatory changes through the hierarchy of governance documentation
- Used machine learning and artificial intelligence to improve readability and policy adherence
- Published documentation across the business, and tracked policy readership, attestation and adherence
- Tracked ownership and responsibilities based on senior management functions
- Generated market intelligence reporting for management, auditors and regulators on the status of governance documentation and firms’ compliance in real-time
General Observations of the pilot and findings:
Current State vs. New Way
Estimated reduction of the quantity of policies as a consequence of consolidation is 40-50%
Days it takes to refresh a policy 30 instant
Projected savings equaling to over 30%
Benefits to participants included:
- Being able to track policy readership and attestation, which they were unable to do in the past
- “Handover” of policies and historic audit trails have become instant, which took over 30 days in the past
- Clarity for senior management on documents they are accountable for
- Policy refresh lifecycle has been reduced from an avg. of 11 stages (authoring review edit approval sign off) down to 5, which subsequently leads to the reduction in the time it takes to update a single document
- 75% of documents can be standardised
- Ability to construct a seasonably adjustable policy review cycle
- Real-time collaboration on documents
- Management information, reporting capability
The pilot demonstrates that ClauseMatch’s policy management solution is applicable to the needs of the insurance industry.
Head of partnerships Anastasia Dokuchaeva commented: “There is an existing hierarchy of governance documentation: policies, standards, procedures, and controls which in all its overwhelming complexity need to be managed easily. The key focus for ClauseMatch was to create a digital governance map for the insurance industry which would actually allow tracking everything in real time, ensuring all the documents are timely updated.”
Mark Posner, Change Program Director at Barbican Insurance Group said: “We were very pleased to be able to work with ClauseMatch. The application addresses a genuine market issue and is highly innovative in its use of AI to help streamline compliance procedures.”
Nonna Polonskaya, Lloyd’s Lab Team commented: “I am very excited about the results that ClauseMatch have achieved while at the Lloyd’s Lab. The team built strong relationships with their mentors from AXA XL, Argo Global and Barbican Insurance Group. ClauseMatch is new to the insurance so the team had a crash course on all things insurance thanks to their mentors’ expertise and willingness to help. They learned very quickly and managed to showcase how the solution can make a real difference to the way compliance departments currently work – and all of this in just ten weeks! I am proud to have been part of their journey!”
Notes to editors
- The regulatory framework is one of the biggest ongoing challenges for the insurance market. However, for decades the insurance companies have been dealing with policy management in an outdated manual way. Compliance checks are performed by the lead market, who cannot say with confidence if a policy is compliant or being able to issue a compliant policy. With all the process not in a digital format, lacking one secure place to access all documentation at any time, makes it is massively disorganised and challenging.
- The results of the POV have shown that the time spent to refresh policy documents has reduced to several hours. A dynamic governance map was created with all policies, procedures, and controls interconnected in the hierarchy being stored in a single repository, the document hierarchy systematised on a paragraph level. The handover of policies’ ownership and historic audit trail now happen instantly, as well as the creation of instant reports. This eventually led to cutting expenses.
- Regulatory scrutiny of the insurance industry has probably never been more acute than now. The regulatory framework is one of the biggest ongoing challenges for the insurance market. However, for decades the insurance companies have been dealing with policy management in an outdated manual way. Many agencies who do apply technology, continue to rely on legacy systems that are slow, inefficient and make access to data difficult.
- To recall, one of the four priorities set for this year’s second Lloyd’s Lab cohort was focusing on the solutions for back-office, aiming to reduce the costs and the burden of regulatory compliance.
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About Lloyd’s Lab :
The Lloyd’s Lab is the home of InsurTech at Lloyd’s and is based in the iconic building in Lime Street, London.
Innovative start-ups join the Lab for a ten-week programme, where they are partnered with mentors from managing agents across the market. Here they work on developing and proving their solutions; leveraging the expertise and experience of their mentors and demonstrating how they can add value to the Lloyd’s Market.
ClauseMatch is a software technology company that enables financial institutions to comply with their internal corporate governance documentation (standards, procedures, controls). It is a 2014 graduate of the inaugural Barclays accelerator programme, BBVA Open Talent challenge winner, and is in the top RegTech companies selected by CB Insights and Dow Jones. The company is live at several global financial institutions. The solution brings unprecedented productivity and transparency for Compliance, Legal, Finance, Operations and Risk teams saving millions in terms of time and resources, while significantly reducing risk and providing accountability.