National law firm Weightmans has launched a data and analytics tool for the handling of large loss insurance claims.
PREDiCT, which has been developed by the firm’s in-house data scientists, uses sample data from more than 1,000 individual claims, harvested over a 10-year period, to deliver optimum reserving for new claims.
The new tool mitigates the lack of claim information at initial reserving by modelling a series of potential outcomes to calculate an appropriate figure.
During testing, a 71% average improvement in reserving accuracy, representing a global average reserve reduction of £285,000 per case.
Will Quinn, partner at Weightmans, said: “Large loss claims are notoriously challenging for handlers. Rising claims inflation across portfolios, the need to reserve with often-scant detail on the extent of a claimant’s injuries and drawn-out lifecycles all present major challenges, which can lead to indemnity leakage.
“We recognised the untapped potential of data in delivering fresh insight, shaping strategies and informing settlement offers. Though the expertise and experience of claims handlers can never be replaced, through augmented intelligence, we can complement their insight to deliver the most accurate and insight-driven results for clients.”
Weightmans is currently developing a similar tool for the volume injury space, with the aim of providing a predictive analytics solution for the claims value spectrum.
Image courtesy: Goran Nastic
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