“Moneyball” Comes to Claims Handling
Having revolutionized how we look at everything from baseball, elections to meteorology, it was only a matter of time before predictive analytics were utilized to better manage workers’ compensation claims. According to a recent Business Insurance article, Rising Medical Solutions spent five years polling “high performing” claims organizations and found that they utilized predictive analytics eight times more frequently than underperforming firms. Successful firms have found that by warehousing and analyzing data they are able to identify higher risk claims earlier in the process and to respond in a proactive manner.
OUR TAKE: We can learn lessons from the Cubs’ use of predictive analytics to break their 108-year curse. Theo Epstein has credited marrying new predictive analytics with good-old fashion experience and training for optimal results. In the Business Insurance article linked above, Rising also found the highest performing firms focus on hiring the best talent and invest in training at higher rates than their lower performing competitors.
Experience can leverage the lessons of the past whereas predictive analytics now allow firms to anticipate the future and to better allocate their resources.
The author, James Moran, has lectured on the application of advanced concepts, including game theory, to the defense of workers’ compensation claims in seminars nationwide, including before the National Counsel of Self-Insureds’, and is available for a free one-hour seminar, in person or via Webinar. He can be reached at firstname.lastname@example.org.