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Aon tackles comp litigation costs with AI

Posted On: Jul. 22, 2019 2:42 PM CST

AI claims analysis

In an effort to prevent litigation from entering the workers compensation claims process, Aon PLC will use a new analytics tool to analyze historical claims data to identify claims characteristics that lead to litigation before it occurs, a spokesman for the brokerage told Business Insurance on Monday.

In bringing the artificial intelligence platform to clients, Aon will continue its partnership with Santa Clara, California-based CLARA Analytics Inc., which previously helped the broker with its claims auditing platform, according to the spokesperson.

According to data from Aon’s diagnostics, attorney involvement on a workers compensation claim increases total claim costs, often greater than 400%; claims take 195% longer to resolve, and injured employees miss an average of 284 percent more days of work, the brokerage said Monday in a statement.

Using the new tool, “once at-risk claims with higher potential for litigation are identified, we can then deploy mitigation strategies to disrupt the litigation cycle,” the spokesman said in an email.