CodeX to collaborate with insurance leaders on computable contracts to improve the global insurance ecosystem
CodeX — The Stanford Center for Legal Informatics, jointly operated by Stanford Law School and the Computer Science Department within Stanford Engineering, recently launched the Stanford CodeX Insurance Initiative to help bring the power of computable contracts technology to the insurance industry, potentially making insurance services more affordable and transparent to businesses and individuals. As part of the new initiative, CodeX is collaborating with AXA, a French multinational insurance firm, and other insurance leaders to research and test automated computing options using artificial intelligence (AI) to codify the terms of contracts in computable form.
The initiative’s multi-year effort will apply research in computer science, law and legal design to design and build a shared toolset for computable insurance contracts. The initiative brings together influential industry players, insurance regulators and other government agencies, tech companies, academics from around the world, and Stanford students and will share and promote solutions via published research papers, workshops and conferences.
“We hope the CodeX Insurance Initiative will spark greater innovation and collaboration in the industry to improve access to insurance products and help consumers around the world customize affordable insurance to their specific needs.”
Computable Contracts and Insurance
Contracts are critical in the insurance industry – the policy contract lies at its heart – and automating a portion or all of the contracting process will have a profound impact. The sheer number of contracts and their complexity makes it difficult for the parties in this ecosystem to function optimally. In many areas it is possible to codify the terms of contracts in computable form, to make these computable contracts available to all parties in an online contract ecosystem, and to use this ecosystem to provide users answers to real and hypothetical questions about the terms of these contracts.
Computable Contracts and Insurance: An Introduction
“With increased use of computable contracts in other industries, like e-commerce and finance, we are hoping our work with CodeX will bring some of those smart solutions to the insurance industry,” said Roland Scharrer, AXA Group Chief Emerging Technologies and Data Officer. “Our goal is to establish computable contracts as the de-facto standard for insurance contracts that operate in the global market.”
The current focus of the CodeX Insurance Initiative is to bring streamlined solutions to the insurance industry that will result in increased affordability and transparency for consumers of various lines of insurance, including health, and property and casualty. In addition, this initiative will help insurance companies more easily monitor their regulatory compliance, better understand global risks and, potentially, generate new, accessible and affordable products.
“The adoption of computable contracting by the entire industry will significantly improve efficiency, leading to better customer experience and outcomes, as well as spur innovation in data collection and analysis, and policy design and administration,” said CodeX Research Director Michael Genesereth, Associate Professor of Computer Science, Stanford Engineering, and, by Courtesy, of Law, Stanford Law School. “Computable insurance contracts open up new opportunities for consumers and insurers alike, and we’re looking forward working with a number of insurance industry leaders via our new initiative.”
Learn more about the Stanford CodeX Insurance Initiative and computable contracts for insurance.
At CodeX – The Stanford Center for Legal Informatics, researchers, lawyers, entrepreneurs and technologists work side by side to advance the frontier of legal technology, bringing new levels of legal efficiency, transparency and access to legal systems around the world. CodeX‘s emphasis is on the research and development of computational law (complaw) — the branch of legal informatics concerned with the mechanization of legal reasoning.
About Stanford Law School
Stanford Law School is one of the nation’s leading institutions for legal scholarship and education. Its alumni are among the most influential decision makers in law, politics, business and high technology. Faculty members argue before the Supreme Court, testify before Congress, produce outstanding legal scholarship and empirical analysis and contribute regularly to the nation’s press as legal and policy experts. Stanford Law School has established a model for legal education that provides rigorous interdisciplinary training, hands-on experience, global perspective and focus on public service, spearheading a movement for change.