“This predictive modeling project with Claim Analytics has been a real eye-opening experience for us, it is amazing what is buried within our claims’ data” said Scott Brener, Senior Vice President and General Counsel at SFM Insurance.

“One of the surprises for us has been the value of using text mining on our claim case notes”, Brener went on to say.

Text mining is a technique used in advanced predictive models to enable data in free text field to be used in data analysis, something which has previously been difficult if not impossible. “We are using leading edge techniques here at Claim Analytics which are producing great results for worker compensation insurers” says Barry Senensky, President of Claim Analytics.

Claim Analytics has been analyzing SFM’s historical claims data to build predictive models which enable new claims to be scored on their severity at an early stage in the claim’s lifecycle. “This enables us to understand and quantify claim severity without lengthy discussion or debate and take appropriate action quickly” says Meg Kasting, Vice President of Claims at SFM Insurance.

“The way we handle a claim in the first few weeks can shape the outcome significantly.  Our objective is to get our claimants back to work quickly, and the Claim Analytics tool can help us do that.” Meg went onto say.

Claim Analytics understands the significance of this kind of unstructured data, and the importance of text mining in providing even greater accuracy in model building.   “Claim adjusters are a very rich source of information and their notes document their observations, actions and opinions. With appropriate data privacy safeguards, text mining provides an automated methodology to review adjuster notes and uncover valuable information that can be applied to improve a predictive model’s accuracy in measuring claim severity” says Senensky.

About SFM Insurance:
SFM is the leading workers’ compensation insurer in the Midwest, serving businesses of all sizes and types for more than 25 years. SFM provides unparalleled knowledge, guidance and resources to help employers maintain safe work environments, restore injured employees to health and productivity, and minimize the costs associated with workers’ compensation claims.

About Claim Analytics:
Claim Analytics is an innovator in the insurance industry providing in-depth expertise in advanced predictive modeling to major insurance companies to assist with claim scoring, pricing, reserving and fraud detection. As a result, the Claim Analytics team provides innovative solutions to clients’ problems that improve their competitiveness in the market.

Contact Information: For more information on SFM Insurance, please contact Scott Brener at scott.brener@sfmic.com
or on 952-838-4200, 3500 American Blvd W, Suite 700, Bloomington, MN 55431, www.sfmic.com.