Home>Resources>Case Study>Healthcare>Underwriting Analytics increases accuracy of cost predictions

Underwriting Analytics: Predict Cost

Client

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

Objective

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
Speak to AI expert