Leading USA based Life & Disability insurance company

Problem Statement

• Most of the short-term disability claims are getting converted to long term disability claims which leads to inappropriate reserving
• No system to predict the short-term disability claims getting converted to long term disability claims in advance

Analytics Led Approach

Given are high level process steps which were followed

• Data Pre-processing
• Logistic Regression Model creation
• New short-term disability claim
• Output is going to be wither of the following:
  • Less likely to  get converted  to LTD claim
  • Likely to get converted  to LTD claim

Business Impact

• A predictive analytical model using Logistic Regression algorithm to identify short term disability claims having high propensity for conversion to long term disability claim was designed
• Utility mechanism to score the incoming short-term disability claims against the STD – to – LTD Conversion predictive model was created

Critical Success Factors

• Helps to manage and determine claims reserving more efficiently
• Identify fraudulent claims earlier in the life cycle of claims
• Helps to predict the possible duration of a claim and total expected loss and adjustment expenses associated with it
• Recommend for better nursing care in advance to improve customer centricity and profitability
• Helps to determine the leave period in advance