Long-term disability (LTD) insurance provides the most comprehensive and cost-effective income protection. Insurance providers offer LTD insurance to help maintain customers’ standards of living if they are unable to work due to non-work-related illnesses or injuries.
Who qualifies for long-term disability? Those who cannot work due to health-related reasons. Depending on the employee’s policy, coverage begins several weeks after filing a claim and can payout for a year or two up to 10 years. Some policies can also cover employees up until age 65 (retirement age).
That is a long time for an insurance provider to payout. How do providers weigh the risk of a customer becoming disabled versus how much to charge premiums? Keeping premiums for this insurance low increases customer satisfaction and retention rates.
So, how do insurance providers keep the rates low? By predicting the likelihood of an LTD claim. Machine learning can help the provider with accurate plan pricing that creates a better customer experience and decreases unforeseen costs.
How does machine learning accomplish this predictive capability?
ElectrifAi’s Long-Term Disability Claims machine learning model is very effective at:
This model has also been used in the real world with real business impact:
What technology does this machine learning model use that makes it so accurate and effective?
What data sources and features are used to run the model?
The model uses the following data to output a likelihood to file an LTD claim and to estimate the cost of an LTD claim:
How can ElectrifAi help your business?
ElectrifAi has extensive domain knowledge and experience helping well-known insurance companies increase revenue, decrease costs, and reduce risk. Would you like to enhance your customer satisfaction and create a better business?
To find out more, reach out to us today!