How do we build a better mousetrap in claims?
In this case, I am referring to your claims data strategy as the mousetrap and the need for better, smarter tools in your claims process. In the current climate, there has never been more important time to develop and execute a well-considered strategy. The reasons are many. For example, it has been well documented that there are fewer and fewer experienced claims professionals in the industry every day.
That means among other things, missed opportunities which lead to more unnecessary large losses, claims overpayments, etc. Approaches to data utilization are varied to say the least. This is a BIG topic but we will touch on a few high-level thoughts.
Predictive analytics has been in vogue now for some time and it can be seen in the claims world in various iterations—different data sources and outputs, different levels of sophistication, varying degrees of effectiveness, and homegrown vs off the shelf. There have been some EXCELLENT results realized by some, while many insurers still have opportunities and limitations, even if they have started on the predictive analytics journey.
Traditionally, such solutions haven’t effectively been able to use non-structured data. This means that a lot of valuable information in claims files isn’t part of the equation. Solutions also tend to be predictive but not prescriptive. The types of data used may be limited to such things as demographic and medical, which can trickle in slowly over time.
There are other valuable buckets of data such as comorbidities which can be utilized yet it may be a mixed bag as to whether it can be used as part of a complete predictive analytics application or not.
At The Claim Lab, we are as you know obsessed with the analysis of psychosocial data. This is the only bucket of data that contemplates what is going on in a claimant’s head and that is something that should not be underestimated when it comes to returning from an injury or temporary disability.
This sort of information has been proven to be very effective on its own. Some of our more strategically inclined clients are taking it to the next level and working with us to embed this information to build a better mousetrap by incorporating psychosocial factors into their broader predictive strategy.
So, when it comes time to consider your strategy, psychosocial information adds great depth of understanding to the claim management process. The Claim Lab’s approach of collecting this information on a consistent measurable scale has proven to be a highly effective tool in our clients claim operations.
We look forward to working with you in your own journey!
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