Enterprise software provider Gradient AI has announced an expanded relationship with workers’ compensation insurer MEMIC. This announcement was made during the WCI 2023 Conference, marking a significant step forward in their collaboration.
MEMIC has already been utilizing Gradient AI's underwriting solution to improve risk prediction and capture institutional knowledge. Now, they have decided to leverage Gradient AI's capabilities further to enhance their claims management outcomes. This expanded agreement will see MEMIC utilizing Gradient AI's ClaimsBenchmarking and Total Incurred Prediction solutions.
The ClaimsBenchmarking solution allows MEMIC to identify trends and outliers within their claims data, enabling them to refine their decision-making process and improve reserve management. By comparing their claims' reserves to industry norms, MEMIC's claims managers can determine if a reserve is adequate or requires adjustment.
The Total Incurred Prediction solution allows MEMIC to predict the future cost of each case, enabling claims managers to set reserves within a certain range based on these predictions. This approach provides a more accurate and consistent method for managing reserves, ensuring that future predictions align with predetermined parameters, Gradient AI said.
With approximately 11,000 open claims at any given time, MEMIC is constantly seeking strategies to enhance the efficiency and accuracy of its claims management operations. Recognizing the value of artificial intelligence and machine learning, MEMIC chose Gradient AI's Benchmarking and Total Incurred Prediction solutions to optimize claim outcomes, reduce costs, and improve reserve accuracy.
“Our claim team is excellent but Gradient AI takes our game to a new level,” said Matt Harmon, senior vice president of claims at MEMIC. “The benchmarking tool compares individual claims to similar industry claims. It highlights those claims deviating from norms, enabling us to decide if reserve levels are adequate. Adequate reserves create greater accuracy when calculating experience modification factors, and in turn, better serve the interest of the policyholder and MEMIC alike.”
“MEMIC's visionary approach to unleashing the potential of data within its workers’ comp claim operations is commendable," said Stan Smith, founder and CEO of Gradient AI. "Through strategic benchmarking against industry-wide data, and leveraging powerful predictive insights, the company is poised to elevate the precision of its case reserves, amplify claims management effectiveness, and enhance its ability to grow profitably. We are proud to provide industry-leading underwriting and claims management solutions and thrilled to continue to support MEMIC on its journey toward greater excellence.”
Earlier this month, Gradient AI announced a partnership with American Trucking and Transportation Insurance Company. In July, it announced a collaboration with ATS Underwriting.
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