How to Detect the Differences Between Old Policies and New Policies

Innovation in AI has meant a powerful shift for insurers. Despite being one of the oldest industries on the planet, insurance companies are racing to pick up AI. Why? Competition. In an IBM study of executives, 72% of top performing CEOs agree that competitive advantage now depends on who has the most advanced AI. Another IBM report suggests that anywhere from 13-31% of profits are now directly attributable to AI.

Insurers understand AI’s cost-saving and profit generating potential when used at scale, and brokers can access similar benefits day to day. Well-built AI platforms power through lengthy policy documents and give brokers a critical edge. Here’s how:

Detecting Policy Changes with AI

Brokers must perform some reasonable diligence over documents from both customers and insurers. Brokers have traditionally had to read through these policy documents by hand, searching for differences in coverage, pricing, and exclusions that would impact the client. They’d have to approach the underwriter on the file or the client themselves — often with unclear info.

Today, AI diligence tools can flag even the most minor differences between two files. AI tools allow for brokers to simply upload new and old documents across their book of business, before automatically flagging changes and verifying files. AI platforms can:

• Highlight changes between two policies and versions for customers
• Uncover exclusions and changes in premiums buried in dense pdf files
• Catch endorsements, riders, or clauses that change coverage amounts

AI speed gives brokers access to information in seconds. Fast turnarounds help boost client conversions and improves negotiations with underwriters, because getting accurate information takes less time. Most importantly, brokers can go into every call with a clear understanding of the client profile and policy file.

AI spots pricing gaps and offers information opportunities

AI-powered tools can scan multiple policies, multiple documents, and flag inefficiencies for your clients. Say you focus on insuring business owners, and many of your clients own a commercial property. The AI diligence tool you use allows you to upload old and new policy documents, and will then highlight all differences in price, coverage limits, wording changes, and terms.

One of your clients renews their policy and sees a 20% increase in their premium. You compare policies with a different insurer, and use AI to confirm that the two policies are equivalent. With the new info, you might call the insurance provider and ask whether the premium increase was a risk-based adjustment or a pricing update. Then, you probably bring new information to the client to confirm.

Say this client switches and saves 20% on the policy. If another one of your clients renews, you’ll be able to anticipate the premium increase — and be able to front run the conversation with this new info. Access to a speedy document comparison tool help you win the deal, retain clients, and increase commission.

Smarter conversations with underwriters, clients, and insurance companies

Brokers using an AI-powered tool can run up to 40% faster. In addition to capitalizing on pricing differences and spending less time on manual review, brokers can detect policy changes across their entire book of business: generating renewal reports automatically, flagging options before the clients receives a renewal notice, and monitoring market trends for pricing shifts.

Speed is essential in insurance, and AI tools help brokers stay ahead of the curve - performing some of the most critical document review processes on the file.