Insurance Industry

Compliance requirements that are rigor, for instance as enforced by the IRDAI must be kept on the check all the time. According to Deloitte, the cost of failing to bring the operations into compliance with global standards can cost a company an additional of 3-5% of its operations annually in penalties and disruptions.

This means that manual reviews take a long time to handle all issues to do with claims related contracts and as PwC highlighted 40% of insurers experience this. Consequently, this has a negative effect on customers and increases expense bills.

In reinsurance business, works agreements are complicated, and thus require careful analysis and investigation. Not the required number of reviews can lead to such consequences as additional and unpredictable risks, financial and operational some of which can become critical for the company, as pointed by KPMG.

The Risk Report feature helps in real time tracking of these regulations and, other mandates set by IRDAI. It fulfils a preventive function by enabling insurers to be aware of changes in regulatory requirements before the latter disrupts the insurers’ operations and increase their non-compliance expenses.

The Legalbook solutions such as Obligations Mapping and Metadata Extraction ensures that the claims related contract review and approval are faster and the claim resolution time shorter. A faster processing system improves the customer satisfaction level and therefore results in a better policy holder satisfaction.

Using Legalbook’s Due Diligence and Contract Summary features, extensive metadata is obtained on reinsurance contract clauses and summary of the contracts is made. This allows detailed work to be done when investigating any company to check for any undetectable risk factors that could affect the company and to as well help adhere to various legal necessities; thus decreasing risks and increasing clarity.