Aon launches Contract AI for reinsurance coverage analysis

Aon has launched Contract AI, a new artificial intelligence (AI) platform designed to help insurers assess exclusions in reinsurance contracts and improve coverage negotiations.

The platform will allow Aon’s reinsurance brokers to analyse policy exclusions following catastrophe, cyber and geopolitical events, as well as during renewal discussions.

Aon said Contract AI interrogates its entire US and Canada contract database from the past three years in real time.

The data are analysed on an aggregated basis to protect privacy, according to the re/insurance broker.

The broker said the platform will help assess market coverage trends, exclusions and limitations, allowing brokers to advise clients on future coverage requirements and reinsurer appetite.

Contract AI covers 15 lines of reinsurance business, spanning property, casualty, excess and surplus business and life.

Aon said the tool will allow its reinsurance brokers to evaluate evolving clauses, exclusions and broader market trends to negotiate and optimise cover for insurer clients.

The platform can be used after major events, including natural catastrophes, geopolitical instability, cyber incidents and supply chain disruptions.

It can also be used ahead of renewals to identify coverage changes, understand reinsurer appetite and advise on market benchmarks for peer review and placement strategies.

Aon said assessing market-wide coverage impacts from complex events has traditionally required extensive manual review of carrier communications, clauses, exclusions, endorsements and broker intelligence.

The broker said that process could take days or weeks.

Randy Stanco, president, US reinsurance business performance at Aon, said: “We need to ensure that our clients have robust coverage with no gaps or surprises to fulfill claims commitments to their customers and create sustainable portfolios.

“Contract AI enables our reinsurance brokers to quickly analyze market developments at scale, identify emerging coverage considerations and provide clients with timely, relevant advice to meet strategic goals.”

Contract AI was developed by Aon’s risk capital product team and uses large-scale data aggregation, natural language processing and intelligent search capabilities across market data sources.

Aon said this enables brokers to synthesise results quickly and provide clear insights to clients.

The launch is part of its 3x3 Plan. In 2024, the firm committed $1bn to help clients make better decisions on interconnected issues through its risk capital and human capital capabilities, while using AI and advanced analytics to turn data into real-time insight.

Marc Boone, global head of product strategy for reinsurance at Aon, said: “Contract AI advances Aon’s position in developing innovative technology that enhances the analysis of critical reinsurance coverage, building trust and resilience across our industry.

“As the risk landscape becomes ever more dynamic, Aon’s AI-enabled capabilities will play an important role in helping organizations make more informed business decisions,” Boone added.