Frank Zizzamia is director, actuarial, risk & analytics at Deloitte Consulting LLP. Jim Kinzie is senior manager, actuarial, risk & analytics, Deloitte Consulting LLP. Caroline Buckley is senior manager, actuarial, risk & analytics, Deloitte Consulting LLP. Andreea Brezeanu, Consultant, actuarial, risk & analytics, Deloitte Consulting LLP. For more information, visit www.deloitte.com.

Chances are, by now you have heard a lot of discussions happening around the implementation of claim predictive models and the potential cost savings that can be achieved. However, have you considered the impact on claims handlers as a result of implementing a claims predictive model? In this article, we will focus on the human capital impact of leveraging advanced analytics in the claims life cycle.  

A Balanced Approach To Implementation 
By taking the plunge and implementing claim predictive models (CPMs), claims organizations have started the journey towards identifying and solving organizational problems that exist today, next month and years down the road. If implemented and used correctly, models can provide immediate insights and tangible cost savings for the organization.  Leveraged effectively at first notice of injury or loss (FNOI/L) and throughout the lifetime of the claim, advanced analytics can have an impact on various aspects of the claims lifecycle: claims assignment, special investigative unit (SIU) referral, medical case management, litigation, subrogation, escalation and, ultimately, claims settlement and outcome.