Optimize payments made on third-party insurance claims

Client: UK-based personal and automotive insurance provider with businesses across global insurance, investment management, and other financial services

OPPORTUNITY: The client wanted to optimize the payments made on third-party insurance claims in its personal insurance and automobile insurance businesses. The client wanted to improve upon existing solicitor’s negotiation and settlement based process.

SOLUTION:

SGA implemented the following steps to design a customized solution for the client:

• Regression: To predict if settlement value exceeds COA, the SGA team designed a Logistic Regression model using independent variables such as solicitor score, solicitor location, injured body part, number of people injured, and vehicle type
• Segmentation: The SGA team filtered the successful claims on the basis of average settlement value, using various target variables as above. The team then designed decision-tree algorithms to determine the actual segmentation.
• Offer value identification: Using the above tools, the SGA team valued any new claim based on the average settlement value of the successful cases in the relevant segment

VALUE DELIVERED:

• Delivered 82% accuracy on unseen data
• Aided growth of 18% in revenue on a sequential basis