The insurer is using the analytic claims reserving platform to establish more accurate loss reserves earlier in the life of its claims in a bid to improve financial performance and profitability.
The implementation comes as a study by the National Council on Compensation Insurance (NCCI) found that the reserve deficit of the property and casualty industry amounts to more than $30bn. To combat this, NCCI suggests that carriers should calculate their potential risk exposures in order to set aside enough money to cover any losses.
Fair Isaac claims its MIRA Claims Advisor 2.0 reserving models will help Workforce Safety & Insurance (WSI) predict reserves closely to the actual claims costs. It is hoped this will prevent over- and under-reserving of funds used to pay its workers’ compensation insurance claims.
The company also said its MIRA models will enable the payor to make timely modifications, premium adjustments and rate assignments as well as recalculations of reserves in response to new data.
WSI will use the platform via a Fair Isaac hosted Application Service Provider (ASP) delivery method.
