Find the measurable benefits of
taking a data-first approach to integration
By Ilya Filipov
Traditionally, errors and omissions (E&O) exposure has been tied to human factors like missed renewals, coverage misquotations or lapses in communication. These have been visible, traceable and often preventable through better process oversight. However, in today’s environment of accelerated mergers and acquisitions, the nature of E&O risk has shifted from humans alone to humans plus technology.
When two agencies merge, they combine not only their staffs and books of business but also their data environments: client records, policy histories and communication logs. If these systems are not aligned or validated, small inconsistencies can cascade into significant liability. Increasingly, data quality issues are triggering the same E&O implications once caused solely by human error.
Agencies that are merging many times use different management systems, data standards and workflows. What’s left after a merger can be a patchwork of records that may be technically migrated but not truly harmonized. Manual reconciliation can be time-consuming and prone to details being overlooked, while conventional migration tools often lack the intelligence to detect nuanced inconsistencies.
Some of the more common data issues that emerge during a merger or acquisition include the following:
- Duplicate or incomplete client records. When records across agency management systems and customer relationship management (CRM) systems are duplicated or partially migrated, client information such as coverage limits, renewal dates or contact details may differ. A service team acting on outdated or incomplete data could issue incorrect documentation or miss a critical renewal, creating direct grounds for an E&O claim.
- Legacy data migrations lacking full traceability. In mergers, historical data is often transferred from multiple platforms without a verifiable audit trail. If a dispute arises over whether coverage was offered, declined or endorsed, the absence of traceable records weakens the agency’s legal defense. Regulators and insurers increasingly expect clear data lineage to support operational accountability.
- Missing notes or unlogged communications. Many E&O disputes hinge on “who said what when,” for example, whether a client requested a specific coverage or whether an agent properly advised the client about exclusions. Missing call notes or unrecorded email threads make it difficult to demonstrate due diligence, shifting the burden of proof to the agency.
- Conflicting versions of policy or coverage details. When merged systems contain different versions of the same policy—for instance, one showing an endorsement while another does not—the resulting ambiguity can invalidate a claim or expose the agency to negligence allegations. Inconsistent versions are especially problematic in litigation, where precise documentation is critical.
Inaccurate or inconsistent information
can make it difficult for merged organizations to
defend against E&O claims or maintain regulatory compliance.
The consequences are practical as well as legal: Servicing delays, billing errors and poor client experiences all become more likely when underlying data is unreliable. Inaccurate or inconsistent information can make it difficult for merged organizations to defend against E&O claims or maintain regulatory compliance.
Applying AI and automation to reduce risk
Advances in artificial intelligence (AI) and automation are creating new opportunities to strengthen data integrity during and after mergers. Typical applications include:
- Automated data audits that identify duplicates, missing fields and discrepancies across systems
- AI-powered normalization that aligns policy data, terminology and formats across multiple management system and CRM platforms
- Automated compliance workflows that log, index and track documentation for E&O readiness
- Human validation layers to ensure contextual accuracy before final incorporation
These capabilities allow agencies to detect potential issues early, maintain consistent records, and create an audit-ready environment without adding any manual burden to agency staff.
Our firm applies a structured combination of insurance process expertise, automation and AI-enabled analytics to support agencies, brokerages and MGAs during data migration and system integration. Its framework focuses on:
- Auditing legacy data for completeness and quality
- Standardizing and reconciling information across disparate systems
- Establishing traceability from extraction through ingestion
- Embedding automation to maintain ongoing data accuracy
This approach enables smoother transitions, reduces manual workload and helps organizations demonstrate due diligence during post-merger audits.
Business and compliance impact
By leveraging AI and automation, agencies and brokerages can modernize their data practices, reduce exposure and build a more reliable foundation for growth. Although AI cannot—and should not—replace human judgment, it provides the consistency and scale necessary to manage data integrity across complex integrations.
Organizations that take a data-first approach to integration can expect measurable benefits, such as lower operational and E&O risk through verified data accuracy. Such agencies have also found that they reach post-merger stabilization and onboarding more quickly, along with improved transparency and compliance readiness.
Most important for long-term success, agents and producers have better insight for cross-sell and client retention initiatives.
As mergers continue to reshape the insurance distribution landscape, data integrity has become a central component of risk management. The firms that treat data quality as an E&O control, not merely an IT function, will be best positioned to sustain the trust of their clients as well as operational performance.
The author
An insurtech veteran, Ilya Filipov is head of North America for Cogneesol (cogneesol.com), a business process outsourcing firm for carriers, MGAs, agents and brokers. He has more than 17 years of experience in financial services, with a focus on scalable growth strategies that combine customer acquisition, operational discipline and digital transformation. Reach him at ilya.filipov@cogneesol.com.
