You are the chief underwriting officer of a multinational reinsurance firm. Your business leadership has just asked you to quantify your organization's global property and excess liabilities as part of an across-the-board evaluation of brokering standards, exposures, and underwriting guidelines. You send your staff off to crunch the numbers from contract data in your data mart, yet you know that any analysis you do is skewed to the point of being useless in its predictive capabilities.
The definition of a contract is simple: It’s an agreement between multiple parties in which one or more parties has an obligation (or several) to the others. The physical contract itself is just a record of that agreement, outlining all of the pertinent details.
Companies make enormous investments in CRM and enterprise systems. So, it’s only natural that they would look to stretch their investment by using those systems for as many functions as possible. The more you use it, the higher the ROI.
Every modern business must deal with contracts. From internal employment contracts to external contracts with vendors and clients, they are an integral part of the operation of any business. Yet for all of the importance that contracts hold to companies, in most cases, contract management is often an afterthought — if it’s even considered at all. Unfortunately, this “out of sight, out of mind” approach to the contract management process often means missed milestones and opportunities — not to mention, a good chance that a business could be out of compliance with federal and industry guidelines related to contract management.
Contract management is much more than simply drafting an agreement between two parties, gathering signatures, and moving ahead with a relationship — and sticking the document in a filing cabinet somewhere, only to be seen again when an issue arises.
Today, the legal arm of PricewaterhouseCoopers (PwC) in Switzerland started selling automated legal documents to the public. That’s what LegalZoom pioneered in the US, and now PwC Legal is bringing it to B2B. That’s big news and it didn’t stop there. They’re also selling their Swiss law docs on PartnerVine, which is an open platform for law firms to sell their legal documents. Together, that’s a revolution.
This week, Exari launched Compare, the market’s most powerful, accurate, and intuitive document comparison tool, capable of identifying all differences between two complex contracts in minutes, not hours or days.
Up until recently, artificial intelligence (AI) was just another new buzzword I was seeing all over Twitter, Facebook, and pretty much every major publication. What came to mind when I would hear about AI was robots making my venti coffee at Starbucks (stay tuned I have a feeling about this one). What I didn't realize is that I was already using AI in my everyday life. Anyone heard of a miss Siri? How about those product recommendations on Amazon or Google’s language translator? Not only does AI play a role on my Amazon Prime membership but it is also making its way into my workplace.
This week Lloyd’s of London issued a new report, which said that the potential loss to the insurance industry from a global cyber-attack, could be as high as $53bn.
The time has come for General Counsels and their teams to deliver true business value, by leveraging complete mastery over their organization's contract portfolio. For too long, contract management has been cast in the "too hard" and "so what?" baskets. And with good reason.
Contract management systems were too hard to implement - data capture was manual and slow, took staff away from their day jobs, and return on investment was questionable and impossible to quantify.