BLOOMINGTON, Ind., Mar 31, 2022 (GLOBE NEWSWIRE) — According to a study by the National Association of Subrogation Professionals (NASP), missed subrogation is costing insurers $15B annually. In the automobile insurance industry, this translates to lost revenues as well as higher premiums for good drivers. But a new tool called SubroCheck, made by Megaputer Intelligence Inc., promises to change this.
Subrocheck is an AI-driven tool that determines when subrogation may occur. When applied to analyze closed claims, SubroCheck identifies opportunities that have been missed by adjusters. To do this, SubroCheck reads the text of insurance claims and performs a fact extraction – over 150 different facts are extracted in all. The facts are then run through a machine learning algorithm which returns an answer of “subrogate” or “don’t subrogate” based on a confidence rating. The developers at Megaputer shared how SubroCheck exceeded all expectations with an ability to read some key facts from the claims with a 99.8% accuracy. “Most auto insurers are pretty good at subrogating, so we only expect them to miss three or four subrogation opportunities per thousand claims filed,” said Samuel Montgomery, the lead developer for SubroCheck. “To separate these claims from the rest of the pile requires incredible precision. A blunt tool won’t do the job – you need to use a scalpel.”
P&C Insurance companies are well aware of the missed subrogation problem, but have so far been unable to address it except by extensive (and costly) manual review. Brian Howard, the marketing manager at Megaputer, discussed the impact this solution will have for insurers; ”Subrogation is a competitive game. Even service providers struggle to keep up with growing business and higher claim volumes. That is why we expect to see a sharp increase in adoption of this technology not only by insurers, because it does the work of many in minutes.”
Megaputer already has its first customer, the project originator that requested it initially as a custom solution. SubroCheck has been improved to be adaptable and scalable to any claim volume for different customer profiles. As part of Megaputer’s effort to spread the word, they intend to present this new solution at upcoming conferences and are offering no risk trials where new customers would only pay for successfully subrogated claims identified by SubroCheck. Megaputer expects this new solution to help auto insurers increase revenues while reducing premiums for low-risk drivers.
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Megaputer Intelligence, founded in 1997, is a leading provider of data analysis software and custom analytical solutions. Megaputer enables its clients worldwide to make informed data-driven decisions using advanced NLP and Machine Learning. The CEO and founder, Sergei Ananyan, leads Megaputer to continue its work developing new ways for all businesses to uncover insights buried in unstructured data.