Automated Treaty Review: Using AI to Analyze Facultative and Treaty Reinsurance Contracts in Minutes - Reinsurance

Automated Treaty Review for Reinsurance: From Weeks of Reading to Minutes of Insight

Reinsurance contract certainty has never been harder. A single placement can include slip policies, cover notes, signed wordings, endorsements, schedules, and parallel broker correspondence — often delivered as inconsistent PDFs and scans. For a Reinsurance Contract Manager, the work of reconciling facultative certificates and multi-year treaty programs against underwriting intent is painstaking and urgent. Missed exclusions, unclear occurrence definitions, misaligned reinstatement provisions, or a silent claims control clause can turn into multimillion-dollar leakage or disputes.

Nomad Data's Doc Chat changes that calculus. Purpose-built for complex insurance documentation, Doc Chat ingests entire treaty files and facultative binders, then instantly extracts, summarizes, and cross-compares coverage terms, exclusions, limits, and subjectivities. Whether you need AI for reviewing reinsurance treaties PDF, to automate treaty slip comparison in reinsurance, to extract exclusions from reinsurance contract sets, or to enable facultative agreement clause extraction AI at scale, Doc Chat delivers auditable, page-level answers in minutes, not days. Learn more here: Doc Chat for Insurance.

Why Reinsurance Contract Managers Face a Uniquely Difficult Document Problem

Reinsurance sits at the intersection of underwriting intent, cedent reporting, broker market practice, and legal enforceability. That creates a distinctive document profile and review burden for Reinsurance Contract Managers:

Volume and fragmentation: Slip policies, cover notes, proportional and excess of loss treaties, facultative agreements, schedules of underlying insurance, signed wordings, treaty endorsements, addenda, arbitration and jurisdiction riders, sanctions provisions, and broker emails scattered across PDFs and scans.
Variability: London Market wordings vs. bespoke regional forms; LMA/NMA/LSW clauses blended with cedent-specific definitions; changes year-over-year that are subtle but material.
Hidden risk in definitions: Occurrence, event and hours clauses; ultimate net loss; franchise vs. deductible; risk-attaching vs. losses-occurring; definitions that shift attachment and aggregation without obvious headline changes.
Financial mechanics: Limits, retentions, attachment points, aggregates and sub-limits, paid vs. free reinstatements, additional premium formulas, swing-rated or adjustable premium, brokerage and taxes, cash call rights, offset clauses, collateral and trust obligations.
Claims governance: Claims cooperation vs. claims control, follow-the-fortunes and follow-the-settlements, cut-through provisions, access to records, audit rights.
Compliance and enforceability: Service of suit, governing law, arbitration seat, sanctions, insolvency and set-off language, regulatory subjectivities.

In reinsurance, the most critical information often hides in dense sections or appendices, and a seemingly minor textual change can materially alter attachment, aggregation, or recoverability. That is precisely the kind of nuanced, cross-document reasoning traditional tools miss and overworked teams struggle to catch under deadline pressure.

How Manual Treaty and Facultative Review Happens Today

Most reinsurance organizations rely on a highly manual process to review and validate contracts, especially when comparing slip text to formal wordings or analyzing facultative terms across cedents and brokers. A typical manual workflow for a Reinsurance Contract Manager includes:

Gathering and reconciling artifacts: Slip, cover note, signed wording, endorsements, schedules, specimen forms, broker confirmations, subjectivities lists, and any retro or inuring coverage references.
Building a checklist: Coverage grant, exclusions, definitions, limits and aggregates, retentions, attachment language, reinstatements and additional premium math, claim reporting obligations, cooperation/control clauses, payment terms, jurisdiction and arbitration, sanctions, insolvency, service of suit.
Line-by-line reading: Scrolling through large PDFs to find clauses and definitions; copy-pasting terms into spreadsheets for comparison across layers, years, and markets.
Version control: Manually tracking redlines between broker iterations, late endorsements, and midterm changes; reconciling inconsistent references between slip and signed wording.
Exception hunting: Searching for non-standard exclusions; verifying standard clauses are present and correctly referenced; validating that coverage intent in the slip matches the formal wording.
Downstream data tasks: Translating textual terms into structured data for bordereaux validation, statement of account (SOA) checks, exposure and limit tracking, and catastrophe modeling assumptions.

Even in the best hands, this approach is slow, error-prone, and difficult to scale. Time constraints force sampling rather than full review, leaving blind spots. When the work spikes at renewals, organizations either stretch teams thin or accept cycle-time delays and contract uncertainty.

Doc Chat: Purpose-Built AI That Reads Like a Reinsurance Expert

Doc Chat by Nomad Data brings end-to-end automation to treaty and facultative review. Unlike generic OCR or keyword tools, Doc Chat uses AI agents trained on reinsurance constructs and your internal playbooks to read, interpret, and cross-validate terms across entire files. It handles whole treaty programs, panel variations, and thousands of pages with speed and consistency.

What that means in practice for a Reinsurance Contract Manager:

Instant document triage and classification: Fac vs. treaty; proportional vs. excess of loss; slip vs. cover note vs. signed wording vs. endorsement; schedules and exhibits; even broker correspondence that materially modifies terms.
Clause and definition extraction: Occurrence/event definitions, hours clauses, ultimate net loss, claims cooperation/control, follow-the-fortunes/settlements, cut-through, set-off, insolvency, sanctions, service of suit, governing law, arbitration, audit rights, access to records.
Financial term parsing: Limits, aggregates, retentions, attachment points, sub-limits, paid vs. free reinstatements, APR formulas, brokerage and taxes, M&D premium, swing-rate inputs, cash call thresholds and timing.
Exception detection: Non-standard or missing exclusions; silent clauses; inconsistent references to underlying schedules; conflicts between slip text and signed wording; endorsements that modify aggregation or attachment unintentionally.
Cross-document comparison: Compare renewal vs. expiring treaties; cross-compare layers or markets on a panel; reconcile slip and wording; align cover notes with final signed documents; surface all changes down to clause or sentence level.
Real-time Q&A: Ask questions like 'List all exclusions and their references', 'Show differences in the occurrence definition vs. expiring', 'What are the reinstatement terms and APR math?', or 'Where is claims control granted to reinsurers?' and receive answers with page-level citations.
Structured outputs: Auto-generate treaty abstracts, clause registers, and comparison matrices in your preferred formats (Excel, CSV, JSON) and push them to downstream systems via API.

The outcome: comprehensive, auditable review in minutes. For reinsurance teams searching for AI for reviewing reinsurance treaties PDF or a way to automate treaty slip comparison in reinsurance, Doc Chat delivers immediate, measurable value.

Use Case 1: Automate Treaty Slip Comparison in Reinsurance

Comparing broker slip text to the signed wording is a notorious pressure point. Small discrepancies can remap coverage. Doc Chat automatically aligns the slip and wording, finding and flagging mismatches such as:

Definitions shifts: 'Occurrence' in the slip vs. 'Event' in the wording; hours clause ranges that differ across documents or layers.
Financial non-parity: Limits and aggregates in the slip vs. signed wording; number of paid vs. free reinstatements; APR calculation inconsistencies; brokerage percent differences.
Silent or moved clauses: Claims control language present in one document but reduced to cooperation in another; sanctions and insolvency terms relocated or omitted; access-to-records narrowed after placement.
Exclusion scope: Slip lists standard market exclusions, while wording adds non-standard carve-backs or removes customary carve-backs.

With Doc Chat, a Reinsurance Contract Manager can run a comparison and export a difference report that includes citations back to the exact page and paragraph. This reduces negotiation cycles and ensures contract certainty before signing.

Use Case 2: Extract Exclusions From Reinsurance Contract Sets

Manual exclusion extraction across a large treaty file is tedious and easy to miss. Doc Chat is built to extract exclusions from reinsurance contract documentation with complete coverage. It surfaces all exclusion references, maps them to standard market codes or your internal taxonomy, and highlights non-standard language. For proportional treaties, it also surfaces any class-of-business carve-outs or peril limitations in schedules and endorsements.

Outputs include:

A complete exclusion register per treaty or facultative file with page citations.
Mapping of exclusions to exposure types and relevant modeling assumptions.
Change tracking vs. prior year or expiring placement.

This workflow directly answers the high-intent query: extract exclusions from reinsurance contract — and does so with speed and defensibility.

Use Case 3: Facultative Agreement Clause Extraction AI

Facultative placements arrive in every format imaginable, from slip-like cover notes to long-form certificates. Doc Chat acts as a facultative agreement clause extraction AI, capturing and normalizing:

Subjectivities and conditions precedent to attachment.
Coverage grant and any sub-limits or special acceptances.
Definitions and exclusions that differ from the underlying policy.
Cut-through rights, claims control/cooperation, access to records, and settlement authority.
Financial terms: limits, attachment and participation, premium basis, brokerage, taxes, payment terms, collateral or security requirements.

The system compares fac terms against your internal standards or the underlying cedent policy to ensure alignment with underwriting intent. It flags gaps, inconsistencies, and missing provisions automatically.

Use Case 4: Renewal Parity and Panel Alignment

Differences across panel markets or year-over-year upgrades and downgrades often slip in unnoticed. Doc Chat provides a parity check across all markets and years, surfacing where terms diverge from the agreed wording or from the lead market. It alerts the Reinsurance Contract Manager when one market's endorsement changes the aggregation mechanics, when a sanctions clause diverges from the lead's language, or when a panel member's definition would impact recoveries.

Use Case 5: Bordereaux, SOA, and Cash Call Readiness

Though Doc Chat is focused on document review, it connects the dots to operational readiness. By structuring coverage terms and claims governance up front, Doc Chat makes it easier to validate cedent reporting later. Teams can align treaty term extraction to future checks on premium and claims bordereaux and statements of account, and preconfigure thresholds for cash call triggers and notice requirements.

Business Impact: Time, Cost, Accuracy, and Contract Certainty

Doc Chat is designed to remove bottlenecks and elevate decision quality across reinsurance operations. The impact compounds across renewals and midterm changes:

Time savings: Move from multi-day manual reading to minutes per placement. Review entire treaty programs, fac binders, and endorsement packs at once. Real-time Q&A ends the endless scrolling.
Cost reduction: Reduce overtime and external legal review on standard checks. Scale without adding headcount during renewal season.
Accuracy and completeness: Eliminate missed clauses and silent changes. AI reads page 1,500 with the same attention as page 1, catching subtle definitional and financial shifts that humans routinely miss under pressure.
Leakage and dispute avoidance: Surface gaps before signing. Ensure alignment across slip, cover note, and signed wording to prevent recoverability fights.
Portfolio consistency: Normalize terms across panels, layers, and geographies. Standardize clause libraries and enforce internal playbooks uniformly.

In related insurance contexts, Nomad clients have reduced multi-week document reviews to minutes, with page-linked citations that satisfy audit, compliance, and reinsurer scrutiny. See how Great American Insurance Group accelerated complex file review in this webinar recap: Reimagining Insurance Claims Management. The same dynamics apply to treaty and facultative analysis: scale, speed, explainability.

How Doc Chat Works Under the Hood

Doc Chat is not a generic summarizer. It is a suite of purpose-built AI agents configured to your documents and standards. The core capabilities are designed for the complexity of reinsurance documentation:

Mass ingestion at speed: Ingest entire treaty folders — slip policies, cover notes, proportional and excess of loss treaties, endorsements, schedules — plus broker and cedent correspondence. Doc Chat scales to thousands of pages per file without slowing down.
Document-type intelligence: Automatically classify document types and link related documents, such as endorsements to the underlying wording or schedules to the slip.
Clause inference, not just keywords: Doc Chat reads like a domain expert, applying institutional logic to locate implied terms and reconcile language scattered across the file. For why this matters, see Nomad's perspective on inference vs. extraction: Beyond Extraction.
Playbook training: We codify your clause standards, escalation rules, and templates so every review follows the same steps. That institutionalizes expertise and standardizes outputs across teams and partners.
Explainability: Every answer provides page-level citations back to the source document, giving your legal, compliance, and audit teams defensible traceability.
Flexible outputs and integration: Export treaty abstracts, comparison matrices, and clause registers in your preferred formats. Connect to contract management systems and data warehouses via API with minimal IT lift.

Because Doc Chat captures the unwritten shortcuts and judgment calls that typically live in expert heads, it reduces variability and onboarding time, and ensures decisions are consistent across desks and renewal seasons.

Security, Compliance, and Audit-Ready Transparency

Reinsurance documentation carries sensitive commercial terms and regulated data. Nomad Data is SOC 2 Type 2 certified, and Doc Chat provides page-linked explainability for every extracted field and recommendation. That means audit readiness is built-in. Leaders can see exactly where a term came from and how it was interpreted, and they can export a full review trail for internal governance or external examinations.

Why Nomad Data: Speed to Value With White-Glove Delivery

Most organizations do not have time to build or tune AI to reinsurance workflows. Nomad delivers a ready solution and partners with you at each step:

White-glove onboarding: We interview your Reinsurance Contract Managers, capture their checklists and unwritten rules, and map them to Doc Chat workflows.
1–2 week implementation: Start with drag-and-drop document uploads. As teams adopt, we integrate to existing repositories and systems via modern APIs in days, not months.
Co-creation and iteration: Your playbooks evolve; so does Doc Chat. We refine clause libraries, exception rules, and output formats continuously.
Enterprise-grade scale: From a single facultative placement to a global treaty program with dozens of markets and endorsements, Doc Chat scales without performance loss.

In short: you are not buying a one-size-fits-all tool. You are gaining a partner and a solution that fits like a glove. Explore the product overview here: Doc Chat for Insurance.

From Data Entry to Decision Intelligence

A large share of reinsurance contract work is encoding text into structured data for analysis and governance. The prize for automating this is significant. Nomad has seen clients compress quarters of effort into minutes by turning unstructured contract packs into structured, validated data. For a perspective on the ROI, see Nomad's deep dive on automating repetitive document tasks: AI's Untapped Goldmine. With Doc Chat, Reinsurance Contract Managers refocus on negotiation strategy and risk decisions rather than manual extraction.

What Gets Extracted and Compared Automatically

Doc Chat is comprehensive. Common fields and clauses include, but are not limited to:

Contract identity: Cedent, broker, treaty title and year, reference numbers, inuring/retro references, line size and market shares.
Structure: Proportional vs. excess of loss; risk-attaching vs. losses-occurring; attachment points; per risk vs. catastrophe definitions; territorial scope.
Limits and retentions: Per occurrence limits, per risk limits, aggregates and sub-limits, annual aggregates, franchise vs. deductible.
Reinstatements: Count, paid vs. free, additional premium calculations (APR), partial reinstatements, exhaustion and notice mechanics.
Premium mechanics: Deposit/minimum and adjustable premiums, swing-rating inputs, brokerage, taxes, payment terms, offset/set-off rights.
Exclusions and carve-backs: War, nuclear, terrorism, cyber, communicable disease, sanctions, and non-standard special exclusions with carve-backs.
Definitions: Occurrence vs. event, hours clauses, ultimate net loss, loss occurrence vs. claim, underlying policy alignment.
Claims governance: Claims cooperation/control, notification timelines, access to records, audit rights, follow-the-fortunes/settlements, cut-through.
Legal and compliance: Service of suit, governing law, arbitration seat and rules, insolvency clause, sanctions and compliance undertakings.
Subjectivities: Conditions precedent to attachment, documentation deliverables, security or collateral requirements, rating triggers.

Every data point is backed by a citation. You can click from a summary field directly to the source page, eliminating ambiguity and speeding sign-off.

Addressing Common Concerns About AI in Reinsurance Documentation

Teams often worry about hallucinations or unreliable summaries. In document-bounded tasks, modern AI performs exceptionally well, especially when configured for page-linked extraction and playbook-driven checks. Nomad builds guardrails by constraining the agent to answer only from the uploaded documents and by requiring citations for critical fields and conclusions. For more on why inference matters and why generic tools fall short, see Beyond Extraction.

From Pilot to Production in Days

Getting started is simple:

Proof of value: Drag and drop a representative treaty pack or facultative file. Ask Doc Chat questions you already know the answers to. Experience real-time Q&A, clause extraction, and comparison.
Playbook capture: We work with your Reinsurance Contract Managers to encode checklists, clause standards, and escalation rules.
Integrate and scale: Connect repositories and contract systems via API. Standardize outputs and push structured data to dashboards and downstream controls.
Continuously improve: Update clause libraries and exception rules as your standards evolve or as new regulatory requirements emerge.

Doc Chat typically moves from pilot to production in 1–2 weeks, with measurable cycle-time and quality gains appearing immediately.

Real-World Transformation: What Changes for the Team

Before Doc Chat, a Reinsurance Contract Manager might spend days reconciling a slip, a cover note, a signed wording, and half a dozen endorsements — then repeat the effort to compare against the prior year and across panel markets. After Doc Chat, that manager receives:

A treaty abstract with financial terms, definitions, and exclusions.
A clause register with presence/absence and deviations from standards.
A difference report vs. expiring and across panel markets.
Page-linked citations for every item to support negotiation and sign-off.

What used to require marathons of reading becomes a targeted review and negotiation exercise. Cycle times compress, and teams focus on high-value judgment calls rather than manual document hunting.

Connecting Document Intelligence to Better Outcomes

The benefits extend well beyond faster reviews:

Stronger negotiating leverage: Walk into broker discussions with a precise, evidence-backed list of changes and misalignments.
Better recoverability: Fewer disputes because alignment across slip, cover notes, and signed wordings is assured prior to attachment.
Portfolio-level control: Consistent clause adoption and standardization across programs, markets, and years.
Reduced leakage: Catch silent shifts in occurrence or hours clauses; prevent missing exclusions; ensure cash call and APR terms are enforceable and clear.
Happier teams: Free experts from rote reading so they can focus on strategy, counterparty management, and portfolio steering.

These outcomes mirror the industry-wide shifts Nomad has documented in adjacent insurance workflows. For a broader view of how AI is reimagining complex insurance processes, see Reimagining Claims Processing Through AI Transformation and AI for Insurance: Real-World Use Cases.

Targeting High-Intent Needs With Precision

If you landed here searching for any of the following, Doc Chat addresses them directly:

AI for reviewing reinsurance treaties PDF
automate treaty slip comparison in reinsurance
extract exclusions from reinsurance contract
facultative agreement clause extraction AI

Each capability is available out of the box, then tailored to your workflows and standards so results fit your organization on day one.

The Bottom Line

Reinsurance documentation will only grow more complex. The organizations that codify their playbooks and augment their Reinsurance Contract Managers with purpose-built AI will win on speed, accuracy, and defensibility. Doc Chat brings contract certainty within reach: full-file reading, structured extraction, instant comparison, and page-linked explainability — all delivered through a white-glove partnership and a 1–2 week implementation timeline.

Ready to see your own treaty pack or fac file analyzed in minutes? Start here: Doc Chat for Insurance.