Technical Overview
The purpose of this project is to provide a comparative analysis, across multiple carriers, of Short Term Disability claim outcomes on an ongoing basis. Results will be normalized, anonymized, and reported across several key risk characteristics, including: age, gender, diagnosis, region and benefit amount.
Each participant will gain quantitative insight into the expected outcomes for various types of Short Term disability claims, as well as a measure of how company-specific outcomes compare to the industry as a whole.
The analysis of claim durations will show the range of expected durations, on a normalized basis, across carriers for each of the risk characteristics being studied.
Similarly, the analysis of claim transition rates will show the range of expected transition rates across carriers. Transition will be defined as a Short Term Disability claim that was approved for Long Term Disability and received at least one LTD claim payment. This analysis will require each carrier to identify which of their STD claims did transition, as defined above, to LTD.
Subsequent phases of the project will use similar techniques to take a more in-depth look at the overall disability claim lifecycle from Absence Management through to LTD claims.
Context Diagram
The diagram below illustrates how information will be submitted to ‘Athena’ on a regular basis via a web services link, via secure file transfer, or via use of the project portal. On-demand claim scoring will be available.
For the scoring of a claim, two models will be used, the first is specific to the carrier’s own experience and the second will be the industry model, providing two scores for each claim.
