CLARA analytics Launches AI-driven Solution to Mitigate Costs of Litigation

Launched at RIMS 2018, the solution helps insurers identify claims at risk of litigation and supplies claims executives with actionable insights in timely fashion.

(Image source: CLARA analytics homepage.)

As SMA’s (Boston) recent white paper “AI Is Changing the Game in Workers’ Comp” stresses, claims increase in complexity when attorneys get involved, so insurers can benefit significantly from being able to identify which claims are likely to involve injured workers hiring legal representation.  CLARA analytics (Santa Clara, Calif.), a vendor specializing in easy-to-use AI-based solutions for the property/casualty and disability insurance industries, has developed CLARA litigation to address that challenge.

Gregory Moore, Chief Commercial Officer, CLARA analytics.

The new solution debuted at the RIMS 2018 Annual Conference and Exhibition, being held April 15–18, 2018, in San Antonio. CLARA says the product leverages AI to help claims operators minimize the impact of litigation. The vendor offers CLARA litigation as a cloud-based solution available on a monthly subscription basis.

“The workers’ compensation system was designed to reduce litigation, and yet 100 years after its creation, litigation remains one of the biggest cost drivers in claims,” comments Gregory Moore, chief commercial officer, CLARA analytics. “CLARA litigation addresses this pain point by strategically applying AI to empower claims teams. For the first time, claims teams can implement a three-part strategy across the life of a claim to avoid and reduce the overall cost of litigation in ways that were not possible prior to AI.”

CLARA litigation supports three key factors aimed at reducing the number of injured workers who seek attorneys in the first place as well as to improve outcomes if attorneys become involved, the vendor reports. The solution does the following, by CLARA analytics’ description:

Mark Breading, Partner, SMA, co-author of the referenced white paper.

  • Identifies claims with the greatest risk of attracting an attorney weeks before lawyers are retained. This enables claims teams to focus targeted interventions on changing the course of the injured worker, potentially heading off litigation.
  • Uses outcomes-based attorney scoring powered by machine learning algorithms to identify the best attorneys for the case when litigation is unavoidable. By engaging the right lawyer, claims teams can dramatically reduce associated costs and resolve issues faster.
  • Leverages AI-driven intelligence to provide insight on optimized settlements for specific cases. This information proves invaluable when determining whether to settle or fight a pending lawsuit.

A CLARA statement notes that SMA’s white paper also found that senior claims executives are well aware of problems that arise once lawyers are engaged, but they have historically lacked ability to analyze claims and make smart determinations. The vendor says that CLARA litigation solves that problem by equipping claims executives with actionable insights at exactly the right time.

How will “Strong” Artificial Intelligence Impact Insurance?

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

Leave a Comment

(required)