How to Leverage the Value of Existing Data Assets
The Value of Data
DOCOsoft offers a whole range of visualisations and models about reserve accuracy. As well as providing one of the essential pillars of an insurance contract and transaction, claims also helps insurers to understand the data that underpins their reserves. It is becoming increasingly clear that such data is a valuable commodity in its own right, Is it time for managing agents to supplement their actuarial resource with a reserve analytics tool?
Lloyd’s wants to ensure that more use is made of internal and external actuarial analysis to support reserve-setting responsibility, to help a managing agent’s board to consider their analysis at a class business level, and to have the opportunity to challenge this analysis. There is a real opportunity to use claims reserving data to model multiple events together, given common reinsurance arrangements.
This data can then help drive discussion with managing agents’ heads of exposure management to determine adverse scenarios, using their capital models to assess deterioration that adopt scenario-based approaches. The drive by Lloyd’s to improve syndicates’ reserve accuracy and Minimum Standards has led to calls for new automated solutions that accurately measure under- or over-reserving across the natural catastrophe, specialty and life insurance and reinsurance classes.
Pattern Detection Technology
Attritional loss ratios have been climbing steadily for several years. Reserving therefore matters a great deal. Claims handlers work on individual claims and, by being immersed in the detail, they may miss patterns and trends. With pattern detection technology, however, we can detect just the right amount of detail. DOCOsoft can find patterns of under- or over-reserving based on particular subsets of claims, focusing on adjuster, broker, location, cause of loss or combinations of these that need to be handled or priced in a different way.
See The Full Picture
We are now in a position to be able to access and integrate data from underwriting systems such as case reserves and policy limits to create a fuller picture of the claims from a carrier and broker perspective. DOCOsoft’s new claims reserving tool supports regulatory compliance with minimum claims standards, helps increase throughput, reduces duplication of effort and supports faster reporting.