19 | 01 | 2024

Is Your Reinsurance Strategy Leak-Proof? What AI Can Reveal That You Might Miss

What Hidden Risks Are Lurking in Your Reinsurance Contracts? Let AI Show You | Case Study

Industry: Insurance (Reinsurance) | Region: Global (North America, Europe, Asia) | Use Case: Treaty review automation for risk and clause alignment

A global reinsurer managing portfolios across Asia, Europe, and the Americas faced mounting exposure due to inconsistent treaty language and overlapping obligations. Manual review processes were slow and missed subtle discrepancies buried in long-form contracts. With billions at stake in aggregate coverage, the risk of misalignment was growing untenable.

The organisation deployed aiMDC to automate the analysis of treaties sourced from more than 30 partner insurers. aiMDC quickly scanned and segmented clauses, highlighting ambiguous capacity terms, embedded renewal auto-triggers, and conflicting arbitration mechanisms. The AI provided cross-document comparisons and alerted legal and risk teams to structural inconsistencies that could undermine enforceability or trigger disputes.

Thanks to the AI’s granular comprehension and traceable recommendations, the reinsurer avoided a costly exposure event tied to a renewal clause that would have bound the company to unfavourable terms. The team renegotiated several treaties with clear, aligned wording — strengthening both their risk posture and their negotiating leverage.

Client

Global Reinsurer operating across Asia, Europe, and the Americas

Environment

Dozens of reinsurance treaties in various formats, governed under multiple jurisdictions with evolving risk thresholds

Objective

Streamline treaty analysis and ensure consistency to mitigate renewal exposure and legal ambiguity

What was done

aiMDC scanned and compared treaty language across partners, flagging capacity mismatches, conflicting terms, and jurisdictional gaps

Achievement

aiMDC uncovered a hidden auto-renewal clause that, if left unaddressed, would have exposed the reinsurer to $200M in excess liability. The AI’s findings enabled legal and risk teams to amend treaty language before renewal, avoiding a multi-year overcommitment. Additionally, teams utilised AI output to unify contract frameworks and develop negotiation strategies supported by evidence. What once took weeks now happens in days—dramatically improving speed, accuracy, and foresight.

What happens next…
Take control of your document challenges today. Connect with our experts, see aiMDC in action, and discover how precision AI can transform your workflow—saving you time, reducing risks, and boosting results. Ready to lead with confidence? Get started with aiMDC

 

‘To protect client confidentiality, certain details have been modified; this case study is intended to illustrate the capabilities of aiMDC’

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