Disability Insurance Pricing
Better Analysis For Improved Pricing Accuracy
Advanced pattern detection
The Claim Analytics pricing approach harnesses advanced pattern-detection tools to identify and quantify, in simultaneity, complex relationships among multiple claim factors : age, gender, elim period, industry, region, salary, benefit, partial and residual benefits, and so on.
We build models to predict both (i) expected incidence rates and (ii) expected claim durations.
The same pattern-detection tools used by Claim Analytics are the tools of choice for many of the world’s toughest and most complex applications – credit card fraud detection, consumer buying prediction, weather forecasting, and taxpayer profiling.
Only a decade ago, this type of analysis was impractical in the business world. The data was not easily accessible. The tools were undeveloped. The applications had not been created. What a difference a decade makes.
The Claim Analytics pricing approach incorporates claimant-specific reserves for each open claim.
The claimant-specific reserves are based on termination rates for each open claim, determined by the particular characteristics of that claimant, including information such as:
- primary diagnosis
- secondary diagnosis
- CID date
With these more precise and more accurate estimates of the costs of existing claims, we are better able to accurately predict the costs of future claims, leading to better pricing.