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Auto Case Study: Litigation Risk Scores

Auto Case Study: Litigation Risk Scores

Preeti Sampath
March 19, 2024
Auto Case Study: Litigation Risk Scores

Pinpoint Helped Identify an Additional 6% of Claimants Likely to Seek Attorney Representation

Client: National Auto Insurance Insurer
Line of Business: Auto Insurance
Model Trained: 130,000 Claimants
Use Case Focus: Claims and Litigation

A national insurance carrier partnered with Pinpoint to receive Risk Scores identifying the likelihood of Third-party Claimants to seek Attorney Representation. With just a name and address, Pinpoint helped identify the third-parties at First Notice of Loss (FNOL) by leveraging a combination of behavioral predictors and advanced deep learning, that matched additional individuals with similar propensities from the insurer’s existing model.

Results

Predicted a 2.9x Top-bottom Spread

Pinpoint identified the lowest segment as being 1.9x less likely than average, and the riskiest group was 1.5x more likely than average third parties to seek Attorney Representation. The model produced a 2.9x top-bottom spread identifying the most and least likely third-party Bodily Injury Claimants who would seek Attorney Representation at First Notice of Loss and with only a name and address.

Identified an Additional 6% of Claimants

The carrier had an existing Attorney Representation model at FNOL, which utilized claim facts, prior claim outcomes, and other external data sources. 

Through a blind validation test, Pinpoint boosted the client’s existing model and helped identify 6% more BI claimants likely to seek Attorney Representation, using only a claimant’s name and address.

Risk Scores Provided Actionable Intelligence

Pinpoint’s Attorney Representation Risk Score was critical in providing the client with actionable intelligence on third-party injury claims, that allowed the carrier to improve their claims handling process, more accurately set reserves, improve the claimant experience, and ultimately, boost profitability.

Third-party bodily injury claimants graph

Why Work with Pinpoint?

Pinpoint’s Risk Scores allow carriers to identify individuals with an exceptionally high or low propensity to seek attorney representation in an injury claim, litigate and other scenarios. Early prediction, available as soon as they have someone’s name and address, help insurers flag an alternate journey for the potential insured. Pinpoint’s Loss Predictions and Risk Scores help unlock a new source of intelligence for insurers to fast-track their profitable growth.

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