Manuscript Insurance: Why Custom Coverage Demands a New Approach to Technology

By Nitin Agrawal, AVP – Head of Architecture Practice at Xceedance

Most large, complex businesses don’t fit inside a standard policy form anymore.

Global supply chains, cross-border contracts, emerging risks, and new business models are pushing traditional wordings to their limits. That’s where manuscript insurance comes in – bespoke coverage drafted around one client’s unique risk profile.

But here’s the catch: while manuscript coverage is great for clients, it’s brutal on legacy systems and operating models.

This post (Part 1 of 2) explores why.

What makes manuscript insurance different?

At first glance, a manuscript policy can look like “just a customized document.”

In reality, it’s a redesign of how coverage, obligations, triggers, and conditions work – and that impacts everything across the value chain.

A single clause can change how you underwrite, issue the policy, bill, handle claims, and even structure reinsurance.

We saw this with a carrier insuring a global logistics client. One negotiated clause defining how liability transfers across 40+ jurisdictions forced changes in:

• Straight through processing
• Rating logic
• Premium allocation
• Document generation
• Claims adjudication rules

One clause, many ripple effects.

The hidden complexity – as questions we hear every day

“Why does underwriting slow down so much?”
Because every manuscript clause is negotiable. Underwriters don’t just fill in fields; they negotiate language with brokers, clients, legal teams, and sometimes reinsurers. SME dependency skyrockets, and cycle times stretch.

“What breaks during policy issuance?”
Standard templates often can’t handle non-standard structures. Ops teams end up:

• Manually editing documents
• Stitching PDFs
• Maintaining separate offline versions

That creates delays, version issues, and operational risk.

“Does wording really affect billing and claims?”
Yes, absolutely.

• Billing: Bespoke rating structures and premium allocations often can’t be expressed in a standard rating engine, so teams resort to spreadsheets and manual workarounds.
• Claims: Adjusters must interpret unfamiliar bespoke terms, conditions, and triggers. That slows down adjudication and increases inconsistency.

Where legacy technology starts to struggle

Most core systems were built for standard products and repeatable workflows. Manuscript business exposes the limits quickly:

• Rigid product configuration – hard to support custom clauses and non-standard structures.
• Inflexible data models – can’t easily store new attributes introduced by bespoke wording.
• No clause governance – dozens of versions of the “same” clause live in emails and shared drives.
• Reduced straight-through processing – more manual routing, more exceptions, more human touchpoints.
• Compliance risk – non-standard filings and endorsements aren’t systematically controlled.
• Heavy testing overhead – every variation requires end-to-end SME review and regression testing.

In short: legacy platforms were designed for standardized risk. Manuscript products live in a different world.

How Xceedance helps insurers operationalize manuscript business

At Xceedance, we work with carriers and specialty insurers who see manuscript capability as a strategic differentiator – but feel the strain across systems and teams.

The focus is not just “fix the PAS,” but redesign the ecosystem around bespoke coverage:

• Modernizing platforms for flexibility
  Enabling low-code/no-code configuration so business teams can adapt products and wording without deep development cycles.
• Building structured clause libraries and governance
  Version control, approvals, jurisdiction tagging, and audit history – so the right wording is used consistently.
• Extending data models
  Capturing new triggers, conditions, and obligations as first-class data, not notes in a PDF.
• Dynamic document automation
  Generating bespoke policies from controlled templates instead of manual stitching.
• Workflow and rules orchestration
  Designing underwriting, billing, and claims workflows that can handle exceptions instead of breaking under them.
• Testing accelerators
  Frameworks and assets that reduce regression testing time, even with frequent manuscript changes.

Final thought

Manuscript insurance is no longer a niche corner of the market. It’s central to specialty, large commercial, and complex global programs.

The carriers that win in this space will be the ones who treat manuscript capability as a technology and operating model priority, not just a “special case.”

In Part 2, I’ll share how AI and modern platforms are transforming manuscript insurance – and how insurers can scale bespoke coverage without burning out their teams.