Case Study – Predictive Analytics
Problem
A Fortune 1000 restaurant client’s general liability claim severity increased by over 50% in a matter of two years. RCS conducted a root cause analysis and confirmed that the increase was driven by the number of megaverdict settlements. The client wanted to find a way to proactively target these claims before they went to trial.
RCS Action
RCS’s team members developed a set of predictive models to identify potentially large claims early in their lifecycle, with updates occurring as more information was gathered on the claim. With this information, the client was able to proactively monitor its TPA to ensure proper resources were being placed on the claims with the highest probability of growth.
Outcome
RCS’s team worked with the client to create a web-based work desk and accompanying emails to identify, monitor and ultimately act upon high-risk claims. With the heightened oversight, the client’s claims team was able to proactively reduce costs of its highest risk claims.