Severity can be predicted.
Less frequency but higher severity
When a claimant is injured, getting them back to work is top priority. But understanding the scope is easier said than done. Much like an iceberg, claims tend to have a lot beneath the surface, making them harder to effectively triage.
Although workers’ compensation claims have dropped in frequency, severity is up, according to recent NCCI figures. Since 1995, lost-time claims severity has increased 214% while indemnity severity is up 138%. Furthermore, insurers are feeling a $20 billion annual increase in medical costs alone.
To stem severity, insurers need tools that provide better insight into the complexity and trajectory in order to predict the cost, length and overall implications of the claim over time.
How can predictive analytics help?
The use of predictive analytics can help identify a host of factors that pinpoint both the complexity and the necessary resources required:
- Flag problem cases like “jumper” claims
- What is the likelihood the claim will skyrocket?
- Predict ultimate payments
- Identify subrogation potential
- Identify the likelihood of opioid addiction
- Pinpoint when a claimant will get back to work
- Assigned the claim to a seasoned adjuster or a nurse case manager
Valen’s ClaimsRight® solution can help you better manage claims and improve customer satisfaction. As the analytics leader in commercial lines, we bring unparalleled market insight, analytic performance, and proprietary data assets that can address your top business priorities.