Managing contracts in the insurance world is like steering a big ship through tough seas. Even when you have good tools, issues in the system can lead to delays and confusion. A leading company that offers cloud-based insurance solutions recently had a tough time. While they used modern tools to help their customers well, their contract management system fell behind as the company grew.
This blog explains how the organization overcame those challenges with an AI-powered CLM solution. This change made workflows smoother, sped up contract approvals, improved teamwork, and significantly increased their efficiency.
Leading Insurance Provider
This new insurance provider has changed the way people view insurance. It offers different products, like auto, health, and two-wheeler insurance, to meet various needs of its customers. The company uses a digital-first way to make it easier for people. They have easy-to-use websites and apps for buying policies, managing claims, and more. With a strong connection of over 10,000 partner hospitals and garages, the business has made insurance easier and improved customer happiness.
Related Article: 9 Legal Issues in Hospital & Healthcare Everyone Should Know
The Challenges Faced
The organization used advanced technology in its work but still had ongoing challenges in managing contracts well. These issues blocked productivity and made it hard to run things smoothly. Here is a closer look at the main challenges the organization faced:
1. Inefficient Workflow Management
The lack of a standard way of approving and executing contracts caused many problems. Each department had its own way of handling contracts, which often included extra manual work. These different processes led to delays, confusion, and uneven results.
- Manual work at several steps in the process is making things slower.
- Long approval times happen because we do not have an automated and easy-to-use system.
- There are challenges in meeting customer needs. There are also issues with following rules because contracts were taking too long to finalize.
This broken method made it hard for the organization to respond quickly to what the market needed. It also struggled to handle complex operations.
2. Outdated Contract Management System
The organization’s current contract management system was mainly used to finalize contracts. It did not manage the whole contract lifecycle. This lack of function created important gaps in the process.
- A lack of ability to follow contracts during their whole life, from when they are made to when they are renewed.
- There is not enough ability to get metadata. Also, there is no way to create reports or check compliance metrics.
- There is limited integration with other systems. This makes it hard to use contract data for making smart decisions.
These limits made it hard for the organization to get useful information from its contracts. They also couldn’t make their contract-related work better.
Related Article: Who uses Contract Management Software? CLM Users
3. Heavy Dependence on Email for Communication
Email was the main way we communicated about contracts. This included messages within the company and from outside. It caused several problems.
- Conversations were all over email threads. This made it hard to keep a good record.
- Many important contract updates were missed or delayed because of too many emails.
- The absence of a main place for communication caused misunderstandings. It also led to people doing the same work and wasting time.
This dependence on email also caused delays in contracts and approvals. Important information was often hidden in long email threads.
4. Few Collaborative Editing Tools
The tools the organization has for working together on contracts are not good enough, which creates big challenges:
- Many people could not work on a document at the same time. This led to confusion.
- The lack of real-time editing made it hard to keep track of changes. This caused problems, as people were sharing and editing old drafts.
- Tracking changes and using feedback during negotiations was hard and full of mistakes.
These challenges often led to delays. This happened during the contract drafting and negotiating stages. It affected the overall timeline.
5. Poor Management of Old Contracts
Legacy contracts were kept in different formats and systems. This made it hard for people to access and use them.
- Retrieving and checking older contracts took a lot of time and work.
- The breaking up of data made it hard to find helpful information or follow past trends.
- The failure to connect old contracts with the new system held back the organization from improving its operations.
Without a clear system to handle old contracts, the organization could not use its past data to make decisions.
6. Communication Issues
The lack of a common communication system caused big delays in the contract management process.
- Communication gaps between departments and outside groups led to slower approval times.
- Answering questions from clients or vendors usually took a lot of time. This often slowed down finding solutions.
- Teams could not see the status of contract talks and updates. This caused misunderstandings about what to expect.
These communication problems led to missed chances and made daily work less efficient.
Related Article: HDFC Securities: Transforming Contract Management
The Solution: An AI-powered CLM System
To tackle these challenges, the organization set up Volody’s AI-powered CLM solution. This system is made to manage the whole contract process, from making contracts to renewing them. This new platform has great features to make workflows easier, improve teamwork, and give useful insights. Below is a clear overview of how the solution solved the challenges.
1. Standardized Workflow Management
The new CLM solution made workflows standard. It automated the contract approval process. Here are the key improvements:
- Automated routing of contracts goes to the right people for review and approval. This removes the need for manual work.
- A single workflow for every contract type helps keep things the same in all departments.
- You can see the status of each contract better. This helps teams track their progress right away.
This automation cut the time for contract approval by 40%. It helped the organization respond faster to market demands and customer needs.
2. Advanced Collaborative Editing Tools
Real-time editing changed how people write and talk about contracts.
- Many people can work on a document at the same time. Changes will be visible to all who are collaborating right away.
- Problems with version control were fixed. This made sure that everyone worked on the latest draft.
- New tracking tools helped stakeholders keep an eye on changes. They made it easy to include feedback.
These improvements led to a 30% decrease in the time needed to draft contracts. This made work more productive and better.
3. Centralized Communication Platform
The Volody AI-powered CLM system took the place of email. It became the main way to communicate about contracts.
- A main platform was created to gather all talks about contracts, updates, and feedback.
- Teams and partners could work together in real-time within the system. This way, everyone could have the most recent information.
- The centralized method removed the chances of missed or late communication. This made things clearer and better.
This change made working between departments much better. It helped cut down on misunderstandings and allowed work to flow more smoothly.
4. Migration and Digitization of Old Contracts
The solution had a complete plan to move and change old contracts into digital forms.
- Historical contracts were scanned, indexed, and added to the new CLM system. This made them fully searchable and easy to find.
- Metadata extraction helped the organization to look at trends and patterns in old agreements.
- The effort to digitize created one place for all contract data. This removed the problem of having data spread out.
This integration helped get useful information from old contracts. It also improved the organization’s ability to report.
5. Automated Notifications and Alerts
The system now has automatic notifications and alerts. This helps to act quickly on important contract milestones.
- Reminders for contract renewals, expirations, and compliance deadlines were sent automatically to the people involved.
- Alerts were set up to fit the group’s workflows. This made sure that no important tasks were missed.
- Teams took charge of managing contracts more actively. This effort cut missed renewals by 50%. It also helped reduce compliance risks.
These automatic features helped make sure important deadlines were always met. This reduced risks and made the work more reliable.
6. Scalable and Customizable Platform
The CLM system was made to grow with the company.
- The platform can manage more contracts. It does this without losing performance.
- The system could change to fit the business needs. It had customizable workflows and features to do this.
- The CLM solution worked well with the tools and systems already in place. This helped it support the organization’s wider operations.
This ability to grow and change helped the organization do well in a tough market.
7. Technical Support and Fast Implementation
The process was simplified to reduce problems with daily operations.
- A committed support team helped with everything. They handled migration and also trained users.
- The change, which included changing old contracts to digital format, was done in just 12 weeks.
- The training programs made sure that all users felt at ease using the new platform.
This helpful support made the change to the new system easy. It also helped people in the organization get used to it quickly.
The Results: A Remarkable Transformation in Contract Management
The use of Volody’s AI-powered CLM solution changed how the organization managed contracts. It brought clear improvements in several important areas. These changes not only made operations better but also helped the organization prepare for future growth and success.
Here are the key outcomes achieved:
Streamlined Workflows
One of the biggest improvements was automating workflows. This cut contract approval times by 40%. Before the new system, contract approvals often took longer because of manual steps and different rules in departments.
With the Contract Management solution, the organization made its contract process the same for everyone. It got rid of delays and made sure that every step—from drafting to execution—had a clear and automated way. This helped contracts get done faster.
Now, the organization can respond quickly to what customers want and take advantage of special chances in the market.
Enhanced Collaboration
Collaboration on contracts got much better with new editing tools. These tools let several people work on a document at the same time. It showed updates and changes right away to everyone involved.
The result was a 30% cut in the time needed to draft and review contracts. This got rid of the confusion caused by keeping track of different versions. It also made negotiations faster, helping contracts get approved more easily.
The better collaboration tools improved teamwork, making sure all important ideas were added smoothly to the process.
Improved Communication
The new communication platform improved how teams talk during contract management. Before it started, teams mostly used email for talking with each other and outside groups. This method caused lost information, confusion, and many problems.
With all contract talks, feedback, and updates now in one easy-to-use place, communication became smoother. Teams could work together in real-time, check past conversations, and keep all the important people informed during the contract process.
This change helped avoid mix-ups and made the work setting clearer and more unified.
Proactive Contract Management
A main part of the new CLM solution was its automated notification system. This system helped teams stay updated about important contract milestones. These included expirations, renewals, and compliance deadlines.
This smart method greatly lowered the chances of missing deadlines. Missed renewals, which happened often with the old system, went down by 50%. The automated alerts helped the group stay in line with its contract rules. This also lets it take advantage of renewal chances quickly.
This change not only reduced risks but also made it easier for the organization to handle its contracts better.
Scalability and Adaptability
The Volody AI-powered CLM solution was made to grow as the organization grew. When the number and complexity of contracts went up, the system adjusted smoothly. It managed the extra work without losing speed or performance.
The ability to customize the solution meant it could meet the organization’s needs. This flexibility kept the system useful and on point as the business changed. It helped with current tasks and planned growth.
Legacy Contract Integration
One of the tough but important tasks was turning old contracts into digital files and bringing them together. Before this change, old contracts were saved in different formats and systems. This made it hard to get to and check old data.
Through a detailed migration process, these contracts were turned into digital files and added to the new CLM system. This setup not only brought all contract data together but also revealed helpful information from old agreements.
Using this past data, the organization got a better grip on trends, risks, and chances. This helped in make smarter decisions and plan for the future.
The Collective Impact
The AI-driven CLM solution brought big changes to how the organization handled contracts. It automated tasks, made teamwork better, improved communication, and included old contracts. This helped the organization work much better than before.
These improvements helped the organization to solve its current problems. They also helped create a strong base for steady growth and new ideas. With a system that can grow and change as needed, the organization is now ready to meet the changing needs of the insurance industry.
