Gradient AI, a provider of enterprise software, has announced an expanded partnership with workers’ compensation insurance MEMIC. This news was made during the WCI 2023 Conference, and it represents a significant advancement in their collaboration.
Gradient AI’s underwriting solution has previously been used by MEMIC to increase risk prediction and collect institutional knowledge. They have now opted to expand their use of Gradient AI’s capabilities in order to improve their claims management outcomes. MEMIC will use Gradient AI’s Claims Benchmarking and Total Incurred Prediction solutions under this expanded partnership.
MEMIC can use the Claims Benchmarking solution to detect trends and outliers in their claims data, allowing them to fine-tune their decision-making process and improve reserve management. MEMIC’s claims management can decide if a reserve is adequate by comparing it to industry norms.
MEMIC’s Total Incurred Prediction system forecasts the future cost of each case, allowing claims managers to set reserves within a particular range based on these forecasts. Gradient AI claims that this strategy provides a more accurate and consistent method for managing reserves, guaranteeing that future projections fit with predetermined criteria.
MEMIC is continually looking for ways to improve the efficiency and accuracy of its claims management operations, with around 11,000 open claims at any given moment. MEMIC chose Gradient AI’s Benchmarking and Total Incurred Prediction solutions to optimize claim outcomes, save expenses, and improve reserve accuracy, recognizing the advantages of artificial intelligence and machine learning.
“Our claim team is excellent, but Gradient AI takes our game to a new level,” said Matt Harmon, MEMIC’s senior vice president of claims. “The benchmarking tool compares individual claims to claims from similar industries.” It exposes claims that deviate from norms, allowing us to determine whether reserve levels are adequate. Adequate reserves lead to increased accuracy when calculating experience modification factors, which benefits both the policyholder and the MEMIC.”
“MEMIC’s visionary approach to unleashing the potential of data within its workers’ compensation claim operations is commendable,” stated Stan Smith, the creator and CEO of Gradient AI. “Through strategic benchmarking against industry-wide data and the application of powerful predictive insights, the company is poised to improve the precision of its case reserves, amplify claims management effectiveness, and boost its ability to grow profitably.” We are honored to continue to support MEMIC on its path to greater excellence by providing industry-leading underwriting and claims management solutions.