Tag Archives: Milliman Datalytics-Defense

How to lower defense costs using analytics (infographic)

For medical malpractice insurers, market pressures continued in 2018 despite overall profitability, according to a May report by AM Best. One way to combat potential headwinds is by lowering defense costs using advanced analytic techniques. In 2017, NORCAL Group began using Milliman’s Datalytics-Defense®, which uses proprietary data-mining techniques to analyze companies’ defense cost invoices and produce actionable insights. The results shown in the case study infographic below demonstrate the extent NORCAL was able to reduce their defense costs, all the while maintaining their overall claims-with-payment ratio.

Milliman Datalytics-Defense: A new approach to understanding defense costs

For many companies, the cost to defend medical professional liability claims is actually higher than the cost of indemnity payments. In many cases, two-thirds to three-quarters of defense costs can come from defense attorney fees. Milliman Datalytics-DefenseTM analyzes the huge amount of data in the line items on attorney bills and provides a new perspective on the actual source of defense costs.

In this video, Chad Karls discusses how Datalytics-Defense can help businesses better manage defense costs and abate future billing.