X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

A growing number of workers’ compensation carriers are refining their underwriting and pricing approaches by data-mining their own systems along with external sources to transform their business. The process — known as predictive modeling — finds and utilizes historical data to understand variations, trends, or patterns. More specifically, a predictive model is a statistical algorithm composed of various factors, such as a claimant’s body mass index, injury type, and medical history. That information is then used to predict future behaviors, such as the ultimate severity of a loss.

Although predictive modeling has been utilized by P&C insurers for years, the focus has primarily been on pricing and underwriting risks. We now are seeing increased interest and utilization of that process to manage claims. Current example applications of predictive modeling for claims include:

  • Identifying potentially fraudulent claims
  • Predicting which claims may benefit from having a specialist assigned to them
  • Developing logic to more scientifically triage claims to the right level of expertise in the organization
  • Determining what differences in the book of business are impacting claim severity

Process Can Reduce Errors

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.