Lloyd’s has launched a new software tool designed to improve the quality of insurance contract review. The tool aims to create more right-first time contracts, leading to fewer disputes, faster claims resolution and lower policy costs. It benefits insurers in the Lloyd’s market by reducing administration and claims costs, thereby improving profitability.

Contract Confidence scans contracts and check for errors and discrepancies. For instance, the tool runs checks against 1,400 open market rules (regulatory, tax and Lloyd’s advisory) and highlights where the contract has failed or may have failed a check.

It also offers the functionality for underwriters to set bespoke rules, so that risks with exposures outside of appetite can be identified quickly and comes pre-populated with the full set of clauses from the new Lloyd’s Wordings Repository.

Director of performance management and executive sponsor of Contract Confidence at Lloyd’s, Jon Hancock said: “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 Lloyd’s managing agents throughout the build process of Contract Confidence. What we have ended up with is a solution that will greatly improve the contract certainty for customers and reduce costs for underwriters. This is a great example of Lloyd’s and market participants working together to leverage technology, reduce unnecessary costs and deliver better outcomes for customers.”

The tool was developed by Lloyd’s in partnership with the Lloyd’s Market Association and four Lloyd’s managing agents, including Brit, Liberty Specialty Markets and Sirius International.

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