Weightmans launches data and analytics tool to transform the handling of large loss insurance claims.
National law firm Weightmans has launched a pioneering data and analytics tool that will transform the handling of large loss insurance claims.
PREDiCT, which has been developed by the firm’s in-house data scientists, utilises sample data from more than 1,000 individual claims, harvested over a 10-year period, to deliver optimum reserving for new claims. It mitigates the lack of claim information at initial reserving by modelling a series of different potential outcomes, and supports handlers in calculating an appropriate figure.
During extensive testing, the first-of-its kind tool delivered a 71% average improvement in reserving accuracy, representing a global average reserve reduction of £285,000 per case.
Will Quinn, Partner at Weightmans, said: “Large loss claims are notoriously challenging for handlers. Rising claims inflation across portfolios, the need to reserve with often-scant detail on the extent of a claimant’s injuries and drawn-out lifecycles all present major challenges, which can lead to indemnity leakage.
“We recognised the untapped potential of data in delivering fresh insight, shaping strategies and informing settlement offers. Though the expertise and experience of claims handlers can never be replaced, through augmented intelligence, we can complement their insight to deliver the most accurate and insight-driven results for clients.”
Weightmans is a market leader in developing augmented and artificial intelligence solutions and legal technologies to support its clients. It is currently developing a similar tool for the volume injury space, with the aim of providing a predictive analytics solution that goes right across the claims value spectrum.
