- B
- Blockchain
- C
- Customer Churn
- Counterterrorism
- Cybersecurity in the Public Sector
- Credit Card Fraudulent Transactions
- Credit Default Rates
- Conversion Modeling
- Claim Payment Automation Modeling
- Claim Development Modeling
- D
- Drug Delivery Optimization
- Disease Propensity
- Digital Wealth Management
- Direct Marketing
- E
- Estimating Sepsis Risk
- F
- Finding Duplicate Customer Records in Your Database
- Fraud detection
- Finding New Oil and Gas Sources
- Fraudulent Claim Modeling
- G
- Google AdWords Bidding
- H
- Hospital Readmission Risk
- I
- Inventory Forecasting
- Insider Threat in Public Sector
- Insurance Pricing
- L
- Loyalty Program Usage
- Life Insurance Underwriting
- M
- Multichannel Marketing Attribution
- Modeling ICU Occupancy
- N
- Next Best Offer
- Next Best Action
- P
- Product Personalization
- Q
- Quality Assurance
- S
- Supply Chain Management
- View global site search results

Claim Development Modeling
Out with the old, in with the new….newer machine learning algorithms are allowing insurance companies to build more robust mechanisms for predicting, once a claim occurs, how much it will ultimately cost.
Problem/Pain
In the time between an insurance claim’s initial filing and full payment, the amount of the claim can change drastically. The ability to predict the final claim amount has significant impact on financial statements, specifically the reserves and Incurred But Not Reported (IBNR) amounts reported in Quarterly Earning statements. Additionally, loss cost modeling relies on Incurred Loss Amounts, which are undeveloped compared to fully developed loss amounts.
Solution
With DataRobot, you automatically build extremely accurate predictive models that lead to a better understanding of how much a claim will ultimately cost. As a result, you can have confidence in how much to reserve for Incurred But Not Reported Loss Amounts. Using the predicted developed loss for each claim as the dependent variable, you will build more robust, accurate pricing models.
Why DataRobot
Click a button and build the most accurate model to predict, at the time of filing, what the final claim amount will be. DataRobot uses not only numbers and characters, but also text features. With the addition of text, you get true insights from variables such as claim adjuster notes, leading to extremely accurate predictive models.