Global insurance and reinsurance brokerage Aon has taken steps to reduce workers’ compensation litigation costs via the expansion of its strategic relationship with CLARA analytics, a provider of artificial intelligence (AI) technology in the commercial insurance space.
Aon’s Casualty Laser Diagnostic tool reveals that attorney involvement on a workers’ comp claim increases the overall cost of a claim, and often by more than 400%. At the same time, claims take 195% longer to resolve, and injured employees miss an average 284% more days of work.
In an effort to significantly reduce the costs of workers’ comp claims, Aon has collaborated with CLARA and has fully integrated AI technology to help identify claims that are at risk of becoming litigated before issues arise, identify an attorney if needed, and also resolve claims efficiently – all in a highly scalable manner.
Kevin Combes, Director of Aon Global Risk Consulting, commented: “Litigation is the most significant cost driver in the casualty claims area and we are thrilled to collaborate with CLARA to solve this major cost burden. The upgraded solution will significantly reduce workers’ compensation claim costs, increase efficiency and deliver innovative solutions that help reduce U.S. companies’ total cost of risk.”
The technology has been fully integrated with Aon’s Litigation, Analysis, Mitigation and Benchmarking of Defense Attorneys (LAMBDA) solution.
Senior Vice President (SVP) of Enterprise Analytics, Innovation & Partnerships at Aon, said: “AI is bringing new possibilities to the way we manage risk. Our growing collaboration with CLARA reflects Aon’s technological evolution to deliver new products that meet clients’ needs today and tomorrow, in a transparent and efficient way.”
Founder and Chief Executive Officer (CEO) of CLARA, Jayant Lakshmikanthan, added: “We are thrilled to join forces with Aon to bring this groundbreaking product to market. We believe strongly that the primary purpose of AI in claims operations is to provide tools to dramatically improve the claimant experience.
“Aon’s LAMBDA 2.0 will help accelerate efforts towards that goal by addressing various aspects of the litigation-related workflows in the claims process – from litigation avoidance, to defense attorney selection, to helping with settlement strategies.”