Kemper Insurance has become the first company to license HNC’s new VeriComp Subro software system, which automatically identifies claims with a high potential for subrogration – claims that should actually be paid by another party. HNC claims that the software could save the insurance industry more than $200M each year.
”We selected VeriComp Subro to increase our savings through the improved identification of subrogation opportunities,” said George Neale, vice president, Kemper. “It integrates with other software applications and can be implemented quickly.”
VeriComp Subro uses predictive modeling techniques to analyze an insurance company’s claims database. It then identifies and refers claims that could be subrogated to analysts for review.
“Property and casualty carriers are under tremendous pressure to reduce costs. Reducing their losses through improved identification of claims that should be paid by a third party can save insurance carriers millions of dollars each year,” said Sean Downs, president of HNC.
“The insurance industry is at the cusp of a transformation that will occur through new technology and the Internet,” said James Bisker, senior research analyst of Tower Group. “Products like VeriComp Subro are the next generation in the application of artificial intelligence in the insurance space. Through the use of artificial intelligence for improved decision-making, companies like HNC Software are raising the bar for the entire industry.”
In March of this year, Kemper installed Mira, a product that assists insurers in establishing reserves for workers’ compensation claims.
The Kemper Insurance Companies, with 1999 revenues of $3.0 billion, is a provider of property-casualty insurance and risk management services. It operates countrywide and in many foreign markets.
HNC Software Inc. is headquartered in San Diego, California.