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Underwriting Analytics: Predict Cost


Large healthcare insurance provider based in Pennsylvania

Business Problem

  • Accurate claim records can positively impact reserve requirements/loss ratio
  • This leads to premiums that are more reflective of your actual experience, than a conservative estimate


Predict medical cost for their group insurance members

Abzooba’s Solution:

  • Interacted with the client’s actuarial, underwriting and products team to understand the nature of costs and their current pricing methodology
  • Developed a predictive model to predict costs for a cohort
  • Created a pricing methodology incorporating the cost prediction model into the carrier’s current underwriting process

Business Benefits:

  • Improves cost prediction accuracy by 3% above the traditional underwriting model
  • Identifies high risk members
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