Analytics solution of the year, Milliman Nodal
When harnessing the power of analytics, users want to see results. Milliman’s Nodal has hit the brief here. One client implementing Nodal saw its claim severity come down 15% and overall losses drop 41% compared to historical valuations.
Nodal is a web-based predictive modelling and decision-support system used for early claim intervention.
In a nutshell, the software uses machine learning to analyse a wide range of claims data to predict claims that are likely to incur high costs, so insurers can optimise management and reduce costs.
This allows automation of low-risk claim payments and better management of higher-risk claims. Users report benefits from having the ability to predict high-risk claims and apply cost containment strategies before they escalate, which can add up to significant claim cost reductions.
The advanced machine learning underlying Nodal helps identify under-utilised data and uncovers exactly which claims to focus on.
As an example of the solution in action, Milliman helped one client looking for ways to identify high risk workers’ compensation claims so they could minimise the risk of those claims blowing up on them.
Nodal scored 700 claims for the client and accurately flagged 19 of the 20 largest claims for the past year.
Judges praised Nodal as a “great example” of the power of data analytics.