Predictive Analytics: Look at These Three Types of Data

Predictive Analytics: Look at These Three Types of DataPredictive analytics have not only reduced the duration of time it takes to extract insights from a large set of data but also identifies patterns beneficial for your business. It’s essential that staff agencies understand that predictive analytics will save you money and reduce the risk of Workers Compensation claims.

According to an article in Risk Conversation,  ensure that there is the highest degree of effectiveness with data, claim professionals should analyze three types of data:

  1. Internal structured data is the most commonly analyzed claims data type. This is data that has been entered into predefined fields in claims forms or lies in a line-item spreadsheet format.
  1. External data is all the information on a claims subject that you can find on search engines. This is information pulled from studies, empirical observations, news items, regulatory data, legal data and millions of other statistical sources.
  1. Unstructured data is the qualitative part that is recorded on a claims subject. This includes claims examiner’s notes, the different medical services a claimant received or medical bills paid. The best way to use this data is in conjunction with quantitative statistics for the overview of a claim.

Predictive analytics is a benefit to many insurers because it offers the ability monitor the most expensive claims from the beginning. By focusing on patterns that sometimes go unnoticed, companies can handle claims efficiently. Predictive analytics is great for three reasons:

  1.  Predicts volatility
  2. Reduces cost of risk
  3. Yields better results as more data is collected

At World Wide Speciality Programs, we understand that most states require that businesses offer their employees Workers’ Compensation insurance. Furthermore, we provide those policies in case of injuries or illnesses. Some of the things we cover under Workers Comp include lost wages due to being unable to work, permanent disability, and rehabilitation. We know that you want to protect your employees and you can do that with us. For more information, call us today at 877.256.0468.