Liberty Mutual bolstered by focus on technology, research and analytics

• Commercial auto insurer service for medium buyers
• Commercial auto insurer expertise for medium buyers
• Commercial auto insurer overall for medium buyers
• Workers compensation provider service for small and medium buyers
• Workers compensation provider expertise for small and medium buyers
• Workers compensation provider overall for small and medium buyers

A focus on technology, research and data analytics has helped Liberty Mutual Group Inc. guide its small- and mid-market clients to strategies that reduce their commercial auto insurance and workers compensation costs.

Last year, Boston-based Liberty Mutual launched its VantageComp predictive model, which uses records from 2.5 million claims to detect comp cases that have complicating factors — such as smoking or obesity — and could result in high costs for claims payers.

That model has allowed Liberty Mutual's claims adjusters to recommend intervention strategies, and the company says the technology has helped comp claims close 15% faster than typical in the industry.

“By collecting and harnessing this large volume of data, we're able to make continuous improvements and lead to better patient care and cost control,” said Chris Cunniff, Boston-based senior vice president of commercial insurance and product manager at Liberty Mutual.

Meanwhile, the insurance company uses data from its Hopkinton, Mass., Liberty Mutual Research Institute for Safety to develop loss-control practices for its policyholders. Those efforts include its Decision Driving training program, which teaches fleet drivers to make better driving decisions and reduce the risk of vehicle accidents.

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Liberty Mutual has worked to tailor its data and recommendations for clients of all sizes nationwide, Mr. Cunniff said.

“Our loss control consultants are able to meet with our policyholders locally in all 50 states and deliver recommendations that are most appropriate for our policyholders' specific needs,” Mr. Cunniff said.

The insurer's approach to customer service has paid off with small and midsize clients in the 2012 Business Insurance Buyers Choice Awards. Liberty Mutual has been recognized by medium-size insurance buyers for its service and expertise in commercial auto insurance, and by small and medium buyers for its service and expertise in workers compensation. Small and medium buyers also voted Liberty Mutual as the overall winner for both lines of insurance.

Liberty Mutual has extended its technology capabilities to clients through its RiskTrac system, an online tool that allows clients to manage and analyze their claims and loss information. Mr. Cunniff said RiskTrac has allowed small and midsize clients to use risk management strategies that previously were available only to major employers.

Moving forward, Liberty Mutual is looking for ways to mitigate increasing workers comp costs linked to an aging U.S. workforce. The insurer also is researching technological advancements that can help improve safety for commercial auto insurance policyholders.

Mr. Cunniff said Liberty Mutual's growing volume of claims information and continued data analysis will help it stay ahead of such trends.

“We're continually looking at research and sharing it with our customers, and we're continually using research to improve our claims expertise,” Mr. Cunniff said.