Custom Professional Liability Insurance Software

AI, OCR, and image analysis technologies are used to automatically capture and process digital and paper insurance applications, customer business licenses, professional licenses and certifications, sample contracts, former claim narratives, and loss run records.

Business documents, as well as professional licenses and certifications are automatically validated against the data from reliable third-party sources, such as business registries, licensing boards, certification laboratories, and professional associations.

Risks are scored using custom actuarial rules or AI algorithms based on a customer’s industry, professional service scope, business maturity, contractual liabilities and obligations, number of employees and their qualifications, quality control and risk mitigation practices, employee training initiatives, and past claims history. AI can analyze web-wide sentiment, recognize professional reputation exposures, and suggest more accurate risk scores.

Individual insurance premiums are calculated based on custom formulas. Input parameters may include a customer’s risk score, requested policy type, coverage scope (damage done, arbitration costs, settlement costs, etc.), duration, limits, retroactive and tail dates, as well as insurer profitability requirements. AI can estimate customer-specific price elasticity, analyze competitor prices, and recommend personalized premium optimization.

Insurance policies are automatically generated from templates that contain terms and conditions specific to different professional services (medical, legal, consulting, etc.) and can be tailored by language, currency, and coverage options.

Insurance policies get instantly updated when customer data changes, automatically terminated at the end of a tail coverage period, and can be renewed ad hoc or upon user-defined events, e.g., receiving the next-period premium payment.

PLI software relies on AI to automatically evaluate claim legitimacy and severity. AI analyzes insureds’ claim forms, claim proofs (demand letters from claimants, incident-related correspondence, witness statements, photo and video evidence), and claim-relevant big data, e.g., data from insurants’ service OMS and compliance tracking systems.

Data on insurer partners specializing in E&O defense and a full record of claim-related communication with law firms is stored in a centralized database or a blockchain. Software enables real-time calculation and tracking of legal defense costs and notifies the responsible parties when the total costs of settlement near the coverage limits.

Due compensation amounts are calculated using custom formulas and prioritized for payment based on urgency, loss amount, customer value, etc. Software can provide built-in payment automation features or route valid claims for settlement to accounting software.

PI software continuously monitors the validity of professional licenses, certifications, and education credits and can notify customers (via email or an insurance portal) about the expiring documents that require renewal to remain eligible for insurance services.

Self-service options let insurants apply for PI coverage, pay premiums, access policies, file claims, and track claim resolution progress. A portal can also provide self-service for legal defense partners and witnesses to share claim-related documentation. Instant messaging enables real-time communication between insurer reps, customers, and partners. An AI-powered chatbot helps users solve simple issues 24/7.

Custom systems enable instant calculation and monitoring of E&O insurance sales, customer retention, underwriting, claim resolution, financial performance, and other KPIs. Using advanced predictive analytics, insurers can accurately forecast revenue and expenses. The required metrics can be automatically reported to senior management and regulators (e.g., NAIC, NICB, CFPB, state insurance regulators).

PLI software and data it operates are protected via multi-level data encryption, permission-based access control, multi-factor user authentication, and intelligent UEBA.

Custom PI insurance software provides compliance with KYC/AML requirements, SOX, GDPR, NYDFS, CCPA, SOC1/SOC2, and other relevant standards and regulations.