How can insurance companies achieve workforce diversity?

There is ample evidence that diverse organisations perform better. An article from 2017, for example, cites a study showing that inclusive teams make better decisions up to 87% of the time, and that decisions made and executed by diverse teams delivered 60% better results. But many insurance companies continue to struggle to build a diverse workforce and to create an inclusive culture – despite diversity being a high priority and focus for senior management and boards.

What is necessary to make meaningful progress? If there were an easy solution, this would no longer be a topic of discussion. Real progress on this front is made with a multifaceted approach that addresses immediate needs and sets the stage for long-term success.

Progress can be achieved by:

• Aggressively changing the culture. We need direct, open communication springing from a common desire for equality, not new barriers borne of fear.
• Implementing policies to eliminate barriers. There are several places to start: reviewing mentoring programmes, training programmes, interviewing processes, and policies around leave and flexible working.
• Building the pipeline. Making the investment to encourage under-represented people to feel empowered, get the education they need, and achieve their ambitions will build the future pipeline. And it will also have a significant impact on changing the culture of your organisation.

In this article, Milliman’s Pat Renzi explores in more detail why insurance companies should continue to build diverse workforces and create inclusive cultures.

The Doctors Company now using Milliman Datalytics-Defense’s innovative AI platform for its claims defense management

Milliman today announced that The Doctors Company has implemented Milliman Datalytics-Defense® as its advanced analytics legal management platform for processing defense cost invoices. The choice of Datalytics-Defense puts The Doctors Company at the forefront of claims defense management, allowing the medical malpractice insurer to collaborate with defense counsel to use best practices for defense strategy through artificial intelligence and data-driven decisions. Milliman Datalytics-Defense employs powerful data mining algorithms and machine learning to help insurers and self-insureds detect patterns in attorney billing practices, delivering a better understanding of costs and case strategies.

“At The Doctors Company, we are continually looking for innovative ways to harness the data available to us and use it to improve our operations and increase efficiencies,” says Cathy Shutack, Senior Vice President of Claims at The Doctors Company. “With Milliman Datalytics-Defense, we’ve found a way to apply artificial intelligence based techniques to our vast amounts of data, and use the resulting information to make better data-driven decisions around the claims management process.”

Milliman Datalytics-Defense is designed specifically for the insurance industry and has subject matter expertise built into the technology and reporting. The tool’s predictive analytic engine is fueled by powerful and proprietary data-mining algorithms that convert text-based data into rich and powerful structured data.

“Leading companies recognize the importance of analyzing the data available to them and unlocking its hidden intelligence as a way to effectively manage and mitigate risk,” says Chad C. Karls, principal and consulting actuary with Milliman. “The Doctors Company has a reputation as a forward-thinking organization that understands how a tool like Datalytics-Defense can benefit its members, and I’m looking forward to continuing our work together.”

To learn more about Milliman Datalytics-Defense, click here.

Arius Enterprise: A better loss reserving process

Today’s actuaries routinely have too much data to analyze. And many insurance organizations have become so complex that managers can’t be sure that loss reserves are adequate and reasonable, especially under ever-tightening deadlines.

Arius Enterprise is a complete software solution that streamlines your entire P&C loss analysis process. It provides immediate access to all your data from throughout the company; the industry’s best tools for analyzing and reporting on your results; and systems to automate much of the mundane work throughout the entire loss reserving process. You get analyses that are efficient, consistent, and accurate. You can be more confident in your results and add more value to your organization.

To learn more about Arius Enterprise, click here.

Claims departments turn to new technology as trucking industry grows

In the trucking industry, there has been greater reliance on shipping items across U.S. roadways, which has significantly increased demand and miles driven. As smaller companies grow to meet this demand, though, their claims departments have often struggled to maintain consistent incurred loss-per-mile-driven results. And the trucking industry has long been subject to escalating claims costs by claimants who see these companies as a “deep pocket.” These claim trends complicate profit and loss (P&L) projections, and some claims departments that in the past silently delivered adequate results have now become a black eye on the P&L. The good news is that there are options available to combat this deterioration of results.

As leadership teams struggle with managing this challenge, several insurtech opportunities offer promise. New advances in technology coupled with claims optimization approaches bring the promise of reduced incurred loss costs, streamlined efficiency, and increased profitability. Trucking companies that have experienced growth over the last few years face several challenges at once: optimizing claims departments, scaling for growth, and integrating technology enhancements to control losses.

As the industry evolves and trucking companies integrate new technology into their claims systems, savings can be realized on both the indemnity payment and expense payment side of the equation. In this article, Milliman consultant Nina Plail explores how the trucking industry is using new technology to stay ahead.

To learn more about how insurtech is transforming claims management in the trucking industry, listen to this Critical Point episode featuring Nina and Christine Fleming.

Managing potential insurtech disruption

Implementing insurtech initiatives as part of the day-to-day operations of an insurance company can add uncertainty to its financial projections. For example, there are some specific ways that insurtech initiatives could affect loss reserve analyses. A loss reserving analysis done without recognition of an insurtech initiative can lead to both inaccurate overall financial projections and incorrect information on the success or failure of the initiative itself.

In this article, Milliman’s Tom Ryan discusses several actions insurers should employ to effectively manage the potential disruptive effect of these new technologies.

IFRS 17 implementation considerations for Takaful companies

As insurance companies prepare themselves for the new International Financial Reporting Standard (IFRS) 17, Takaful companies are facing significant uncertainty in how to interpret and apply the standard to their businesses. Interpreting IFRS 17 for Takaful business is not a straightforward process. This paper by Milliman’s Farzana Ismail, Clement Bonnet, and Philip Simpson highlights several key issues and challenges in implementing IFRS 17 for Takaful business.