illumend CEO warns of risks in automated insurance certificate tracking
Kristen Nunery, CEO of illumend, cautions that automated tracking tools often fail to verify actual policy compliance, creating gaps in risk management.
As businesses increasingly adopt artificial intelligence to manage Certificates of Insurance (COI), illumend CEO Kristen Nunery warns that software capable of data collection does not necessarily ensure regulatory compliance. While AI tools can easily aggregate documents, they frequently lack the complex logic required to confirm that specific policy terms meet contractual obligations.
According to Nunery, many firms rely on homegrown or general-purpose tracking systems that provide a false sense of security. The distinction lies in the difference between document storage and granular policy verification. If a system fails to identify lapses in coverage or inadequate liability limits, the organization remains exposed to significant financial risk despite having a digital repository of documents.
Industry experts note that insurance compliance involves interpreting nuanced legal documents that standard optical character recognition technology often misreads. As organizations continue to digitize their vendor management workflows, the demand for specialized compliance software that prioritizes verification over simple document indexing is expected to grow.