Archive: August, 2016
The concept of contract management can get quite complex. There are many different contract-related challenges facing the modern enterprise, and they don’t affect all people the same way. The best way to get started is simple, yet highly effective – we call it the three O’s of contract management: Organize, Operationalize, and Optimize. You can move on to bigger challenges later, for example automation of contract drafting, approval workflows, and negotiation processes. But starting with the three O’s will give you a strong foundation on which to build:
1. Organize. Store all of your contracts in one place. Whether you keep them in a folder on your shared drive or somewhere in the cloud, the key is to identify major gaps and surprises (e.g. missing or expired contracts) and any major contractual risks that could expose you to unexpected losses or brand damage (e.g. uncapped liability, regulatory failures or rogue vendors).
2. Operationalize. Next, make sure the right people know about your contractual commitments and the commitments your suppliers have made to you. By extracting data about obligations and similar operational issues, you can share it, track it, and avoid the pain of poor compliance. This will mean fewer missed milestones, fewer pricing and payment errors, fewer disputes and fewer cost overruns.
3. Optimize. Finally, armed with better information about contractual risks, terms and process, you can make better decisions and streamline the way you do business. You’ll be able to find and eliminate bottlenecks in the contracting process, leverage past deals to drive better negotiation outcomes, and respond with confidence and speed during a crisis. Put simply, better contract insight will help you build a stronger, more valuable business.
Daunted by making changes in a large organization? Consider thinking globally, but acting locally. Your department or division is a great place to start your journey towards contract certainty and contracting excellence. It starts with better knowledge and insight. But as you grow and evolve, greater benefits emerge from automation and process improvement. It pays to think ahead and make a plan for where you want to go.
For more information about contract management, how it can benefit your organization, and additional resources please visit our contract management page to learn everything you need to know.
From Body Parts to Nuclear Reactors – How Document Generation is Helping Lloyd’s Reshape Risk Management
For over 300 years the Lloyd’s market has been one of the most innovative sources for risk management solutions. From body parts to nuclear reactors, Lloyd’s is a one stop shop for the world’s specialty insurance and reinsurance needs. It’s an ecosystem where close personal relationships, proximity of brokers and underwriters and actual paper policies still matter – and for those willing to work within the square mile of the City of London, it’s incredibly efficient.
There is, however, a very clear and challenging problem that is facing the London insurance market. In the race to expand business and diversify revenue streams there’s an increasing need to tap into technology to connect producers to brokers and ultimately the underwriters of risk.
Although the high touch of the Lloyd’s market works well for underwriting vast amounts of risk for large companies, it isn’t as practical for higher volume, lower value business. With the growing need to tap into these markets, but lacking resources, it is clear that a more automated document generation approach will help to drive productivity, resulting in innovation and growth.
Steve Jobs once told Wired Magazine that, “Creativity is just connecting things.” If that’s the case, then Lloyd’s brokers and, indeed underwriters, are getting creative. If the world is getting smaller it’s technology that’s driving us forward.
This is why we at Exari have created our Submit, Quote, Bind solution, for agents, brokers and underwriters.
Using DocGen™ , Exari’s document generation software, agents are now able to quickly and accurately capture risk information to help generate quote and policy documents. We removed the operational barriers and increased efficiency to make the job easier, reducing time, cost and risk.
This solution is as easy as 1, 2, 3 – with the help of the most advanced document generation software on the market.
- Submit: Using a web based interview the broker can gather all risk information and with the push of a button, create the submission document
- Quote: Carrier can create a quote or decline to quote using the automated system
- Bind: Once the quote is accepted it is set to bind! The underwriter can automatically create the documentation and the invoice.
Exari’s SQB solution is empowering Lloyd’s Syndicates with a source of new business, enabling Agents to quote and bind business locally, with compliant and pre-approved documents from the Insurer, who ultimately accepts the risk. Now, reporting and audit is fully transparent with unprecedented visibility into all data.
SQB is already being adopted by the US, Asia-Pacific and Nordic regions as all insurers are seeking more business in the most efficient way they can. To learn more check out Exari’s Submit, Quote, Bind webpage.