Smart Contract Lifecycle Management: How CLM Transforms the Document Workflow Process in Insurance Firms
Insurance firms face a wide array of challenges when it comes to contract creation, execution, and maintenance. Implementing a well-planned contract management system into their process workflows can help these businesses stay on top of changing requirements, manage transactions seamlessly, and ensure financial profitability.
Intelligent Contract Lifecycle Management or CLM solutions for insurance firms can help them centralize insurance contracts and adopt a paperless system for managing company contracts. The contract management process can become far more efficient and quick by adopting a smart contract lifecycle management system.
Introducing Workflow Automation With CLM to Accelerate Insurance Process Flow
CLM can drive automation into the contract management process of insurance firms. To understand the workings of CLM, it is essential to learn what exactly it is. Contract Lifecycle Management or CLM is an AI-based approach to automating various insurance contract-related procedures, including drafting, executing, and renewals.
Insurance firms have multiple types of contracts such as life insurance, health insurance, motor insurance, property insurance, travel insurance, etc. By using CLM, insurance providers can have a central repository for the different insurance contracts. It facilitates the quick retrieval of the required contracts with automated search and tracking. CLM (insurance) also ensures there is the visibility of the agreement workflow throughout its lifecycle, helping the enterprise and its customers.
Why Is CLM Essential For the Insurance Industry?
The sheer volume of contracts procured every day in insurance firms makes it necessary for them to adopt an AI-led contract management system that automates every stage of an insurance contract’s lifecycle.
Streamlined Approval & Contract Execution
Document approval from multiple stakeholders including claimants, doctors, hospital administrators & insurance executives, takes a long time if insurance firms rely on a semi or non-automated contracting procedures. Additionally, employing written signatures results in insurance operations teams taking as long as 5-10 days to get contracts signed, which slows down client onboarding.
Smart CLM software leverages intelligent approval matrices, customizable workflows, and eSign integrations to expedite complex approval processes and enables teams to get insurance contracts eSigned remotely and instantly.
Scalable & Secure Storage
Insurance contract storage is a challenge since physical storage entails risks of document loss, and manually handling thousands of sensitive insurance contracts & documents is also a massive security risk. Lakhs of existing insurance contracts need to be updated or amended based on changing regulatory obligations.
Smart Contract Lifecycle Management solutions offer centralized and searchable contract storage for insurance companies to store and retrieve key contracts with ease. Version tracking capabilities additionally maintain contract uniformity and help to secure contracts.
Seamless Insurance Contract Management
Contract Lifecycle Management offers a number of beneficial features and integrations that can make document management effortless for insurance companies and help them overcome the challenges associated with paper-based, manual insurance documentation. CLM also aids in designing an enhanced workflow management process that can streamline contract lifecycle administration in these firms.
Additionally, advanced technologies like natural language processing and cognitive computing can make contract drafting quick and convenient for insurers. These technologies can process unstructured data pertaining to contract clauses, court opinions, and statutes to completely automate insurance contracts.
AI-Powered Analytics & Risk Reduction
By leveraging Artificial Intelligence to carry out contract creation, execution, and storage, insurance companies can realize significant improvements in their process workflows. CLM (insurance) plays an important role in improving compliance, reducing risks, and making the contract lifecycle process more efficient.
Smart contract analytics are employed by CLM software to track insurance contract performance, learn from instances of contract breach or underperformance, and provide key insights to enable smart decision-making and risk mitigation.
eSign integrations with CLM also help prevent insurance fraud by removing risks of forgery and document tampering. Insights into contractual responsibilities through smart insurance contract management solutions can help these firms see an increase in their revenue as well.
How Can Implementing Smart Contract Lifecycle Management Benefit the Insurance Industry?
The various features offered by CLM (insurance) can amplify contract management in the insurance industry, by making way for enhanced efficiency, collaboration, and productivity.
- Real-Time Negotiations: Firms can gain results in real-time with the help of a smart CLM that offers digital collaboration. Parties can negotiate online in real-time to enable faster approvals and closures.
- eSign and eStamp Integration: eSignature and eStamping functions offered by CLM software providers such as SignDesk can help insurance firms execute contracts faster. Digital document execution capabilities also offer customers the convenience of authenticating contracts without the need to be physically present on-site.
- Clause and Template Library: Insurance companies can make use of the pre-approved clauses and templates as per their business requirements through the vast content libraries offered by cloud CLM solutions.
- Automated Alerts: A smart contract lifecycle management solution will offer seamless management of contracts post-signature. Reminders through email or SMS for contract renewal dates, payment due dates, and other key events can help insurance firms stay on top of their contract process flow.
- Tamper-Proof Contracts: With eContracts, the security factor is unmatched, as there is minimal risk of the contracts getting tampered with. A smart CLM software can safeguard the company/contract/customer details and store them securely for future reference.
- Analytics Reporting: By incorporating activity logs and audit trails for company contracts, CLM offers total transparency across the organization. Timely reports on the contracts can aid in making contract lifecycle administration more efficient for insurance firms.
- Central Contract Repository: A centralized cloud repository for all insurance contracts can make the required document quickly accessible to the authorized personnel, as and when needed. Having all the company contracts available in a single place also makes contract amendments more fast and convenient.
How Can Insurers Manage Contracts Efficiently Using CLM?
Automating insurance contracting with smart CLM solutions allows insurers to boost business efficiency and streamline complex contracting processes.
Smart CLM digitizes every stage in an insurance contract’s lifecycle and helps insurers scale up their contracting operations.
Here’s how smart contract lifecycle management enables end-to-end automated contracting.
- Contract Initiation: Insurers initiate a contract request.
- Drafting: The contract is drafted using pre-available templates and industry-related clauses.
- Negotiation: Parties align themselves with the contract’s terms and conditions by negotiating online.
- Approval: Post negotiations, the contract travels through various levels of the company hierarchy for approval.
- Attestation: The approved contract is eSigned, binding the various parties to the agreement. The contract is also eStamped to validate it in the court of law.
- Performance Tracking: The performance of the contract through its lifecycle is tracked for compliance and to facilitate easy audit trails.
- Contract Renewal: The parties involved in the agreement can revisit the contract through a central repository for amendments and renewals.
- Commercial Contract Compliance: Commercial contracts are regularly reviewed to ensure compliance with agreed-upon terms and applicable regulations throughout the contract lifecycle.
The digital contracting process engendered by CLM solutions is faster, more cost-effective, and more convenient than traditional insurance contracting.
Implementing smart CLM software has enabled several major insurers to boost operating capacity while reducing contract costs and contract turnaround time by nearly 50%.
In Conclusion
A smart and efficient contract lifecycle management system helps insurance firms centralize all their business contracts, transforming complex workflow into a simple, automated process. Insurance firms can make use of intelligent, reliable, and efficient CLM solutions such as CONTR.ACT offered by SignDesk to streamline their contract management processes.
Innovative features such as clause locking, tokenization, and company profile creation offered by SignDesk’s CLM solution can assist insurance companies to handle their contract workflow efficiently. Firms can observe an efficient contract management process with reduced TAT and expenses by integrating smart contract lifecycle management systems into their business processes.
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