CLARA Litigation for Commercial Auto Reduces Attorney Involvement and Litigation Rates, Improves Loss Ratios
CLARA Analytics (“CLARA”), the leading provider of artificial intelligence (AI) technology in the commercial insurance industry, announced that it has expanded its proven litigation product into the commercial auto line. CLARA Litigation for Commercial Auto applies revolutionary AI and machine learning techniques to identify claims at the risk of attorney involvement and litigation. This enables claims teams to proactively focus their efforts on mitigating the factors that cause claims to escalate.
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“With CLARA Litigation, we’re delivering the sophisticated underlying technology that currently drives value in workers’ compensation to help our customers fix the important but underperforming commercial auto line.”
As is well known, there is a serious need to address the substantial and growing loss ratios in the commercial auto space. According to a recent NAIC report, carriers paid out $29 billion in losses for the line — $11.6 billion of which were directly attributable to legal costs. These excessive costs are the result of high legal involvement rates in commercial auto as compared to other P&C lines. Additional costs are being driven by social inflation stemming from nuclear verdicts and by bad faith suits filed by attorneys. To add to the complexity, potential legal costs and the merit of settlement differ significantly by state. CLARA’s industry-leading AI and machine learning technology addresses these issues by detecting the drivers of many escalations and delivering actionable recommendations that reduce attorney involvement and litigation rates.
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“CLARA Litigation for Commercial Auto is very exciting for us because it marks the first of many new products we’re developing for challenges that span various commercial lines of insurance,” said Gary Hagmueller, CEO of CLARA Analytics. “With CLARA Litigation, we’re delivering the sophisticated underlying technology that currently drives value in workers’ compensation to help our customers fix the important but underperforming commercial auto line.”
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