illumend CEO Warns Against Misconceptions About AI-Built COI Trackers
Kristen Nunery, founder and CEO of illumend, cautions businesses that while general-purpose artificial intelligence (AI) makes it easier to build Certificate of Insurance (COI) tracking tools, these systems do not ensure true insurance compliance. Many companies mistakenly believe collecting certificates equates to verifying coverage against contractual requirements. Nunery explains that AI can help create applications for document collection and reminders but lacks the expertise needed to interpret endorsements, exclusions, or discrepancies in policies. For example, a current certificate may appear compliant while missing critical coverage required by contract terms like specific endorsement types (e.g., CG 2037). This highlights the gap between tracking documents and verifying compliance. To address this issue, Nunery advocates for specialized insurance compliance platforms that embed domain knowledge into their systems. illumend's AI-powered tool Lumie evaluates certificates against contractual requirements, identifies coverage gaps, and provides evidence-based assessments to help professionals resolve exceptions.
Topics: AI in business COI tracking insurance compliance risk management