How to Expand Use of Predictive Analytics in Claims – SAS

Article Synopsis :

The use of predictive analytics within the claims department is often overlooked by insurers, which is a paradox given the impact it could have on the bottom line.

The use of predictive analytics in claims should be a priority for insurers

In the white paper “Building Believers: How to Expand the Use of Predictive Analytics in Claims”, the SAS team provide their research findings while outlining the market changes that have boosted the priority of predictive analytics in claims. The paper focuses on why the use of predictive analytics in claims departments lags that in pricing, underwriting and marketing departments. It also outlines the change management tactics that are required to increase the priority of predictive analytics for claims, and describes emerging trends that will affect future adoption. The paper lists the top five reasons for expanding predictive analytics use in claims:

• Management of claims severity
• Reduced claims processing and indemnity costs, and improved settlement consistency
• Minimized fraud costs
• Better adjustment decisions
• Improved straight-through claims processing

The paper also reviews the six key inhibitors to analytics adoption in claims and highlights the recommended ways to overcome them:

Inhibitor 1: Uncertainty About Predictive Analytic Results

Inhibitor 2: Threat of Litigation Influences Decisions

Inhibitor 3: Competing IT and Claims Processing Projects

Inhibitor 4: Failure to Pursue Both Indemnity and LAE Impacts

Inhibitor 5: Relying on Adjuster Intuition – Not Data – to Make Decisions

Inhibitor 6: Limited Change Management Focus

Link to Full Article:: click here

Link to Source:: click here