Infinity Property & Casualty: Staking the claims process on predictive analytics

Smarter Planet Leadership Series

Published on 6 May 2011

With predictive analytics, we were basically able to close a hole in our pocket where money was leaking out steadily

Bill Dibble, SVP of Claims Operations, Infinity Property & Casualty

Customer
Infinity Property & Casualty

Industry
Insurance

Deployment country
United States

Overview

While Bill Dibble doesn’t believe in “silver bullets,” he saw predictive analytics as something that could be used to help Infinity address a number of challenges and opportunities. While his area is Claims Operations, he articulated an expansive, enterprise-wide vision for the company and is leading the charge to make it a reality.

Business need
Good ideas usually start simple— and Dibble’s idea was. His insight was to “score” claims like lenders score credit, to provide a more systematic, efficient and accurate way to pinpoint fraud. But that was just the beginning. His breakthrough was to leverage the same underlying intelligence to create a smarter claims processing workflow. That made it possible to transform the way Infinity’s agents handle and route claims, resulting in a lesser reliance on external adjusters, lower adjustment costs and—because claims are handled faster—more satisfied customers.

Solution
Leadership is...Big picture thinking Bill Dibble pursued predictive analytics to address what he saw as a growing fraud problem as well as the company’s overall goal of achieving a world-class claims capability. However, in framing and then championing his vision, he took an enterprise view— looking at how it could be used across the company as a whole. “As soon as [Dibble] wrapped his mind around it, he became a visionary and an evangelist for predictive analytics—not just for claims—but also for pushing its value across the enterprise.” — Eric Eckert, IBM Business Analytics

Benefits
400% ROI with six months of implementation; Increase of $12 million in subrogation recoveries; As much as 95% reduction in time required to refer questionable claims for investigation; Increase in success rate in pursuing fraudulent claims from 50% to 88%; Ability to keep 25% of claims within the company’s first notice of loss area (up from 4%), enabling Infinity to sharply improve its Loss Adjustment Expenses (LAE) ratio

Components

IBM products and services that were used in this case study.

Software
SPSS Collaboration and Deployment Services, SPSS Decision Management, SPSS Modeler, SPSS Risk Control Builder

Solution
FSS: Insurance - Core Insurance - Claims, FSS: Insurance - Front Office - Data & Analytics, BA - Business Analytics, BA - Predictive Analytics, Big Data, Big Data & Analytics, Business Performance Transformation, Customer Relationship Management, Smarter Planet

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