Artificial intelligence solutions using natural language processing (NLP) have emerged to address the challenge of fewer human experts available to determine the content and intent of policy wordings. (Photo: iStock) Artificial intelligence solutions using natural language processing (NLP) have emerged to address the challenge of fewer human experts available to determine the content and intent of policy wordings. (Photo: iStock)

Large commercial and specialty insurance is a complex, document-intensive business. The complexity of policy wordings — the contract coverage, endorsements, exclusions, terms and conditions embedded within contracts — has grown exponentially.

Achieving contract certainty, clarity on policy terms and conditions that reduces or eliminates coverage ambiguity, is critical to the solvency of both insureds and policyholders. Lloyd’s of London estimates that disputed claims, including legal fees and unplanned claims payments as a result of inaccurate wordings, cost the market about $600 million annually.

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