Gallagher Bassett: Delivering Analytics-Powered Innovations for Insurers

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Jennifer Turner, SVP of Product Management Since its humble beginnings in 1962, Gallagher Bassett (GB) has become a household name in the global insurance risk and claims management landscape. Today, as a third-party administrator (TPA), GB is a prime choice for insurers and self-insured entities looking to outsource their claims management operations. The factor that has put GB at the forefront of the competitive insurance industry is their commitment to leveraging cutting edge technologies and their ability to repurpose those technologies to suit various niches in the insurance and risk management space. Their success stories and track record are a testament to this—a fact further solidified by GB’s years of expertise in the space, the number of clients they retain, and the value of their purpose-built SaaS-based tools.

Today, more and more players in the insurance landscape are realizing the value of data they either have or don’t have. They need mechanisms to scoop out the relevant insurance data, and analyze it—both from the past and future perspective—to ultimately be able to make proactive decisions. Data analytics proves to be a valuable tool here, helping companies define the next course of action. “The key is to find the data and apply predictive modeling on that data using cutting edge technologies like AI and ML. Then prescribe what’s to be done,” says Joe Powell, SVP of Analytics at GB.

For example, take the resolution management of accidents or medical claims. While every claim dispute may not require the intervention or scrutiny by a medical professional, identifying claims that require early interventions can save up to 40 percent in the combined cost of a claim (including medical cost, lost wages from being out of work, as well as processing cost) that would otherwise be wasted in late interventions. For several of their clients—by providing proactive insights—GB has reduced the number of late interventions needed by 55 percent.

Similarly, another area where data can help is in making better-informed decisions on legal expenditure. Giving the hardest cases to the best firms can make it difficult to compare outcomes, as harder cases inevitably tend to cost more. Determining which claims cases to be given to whom based on the scope and rate of legal professionals is crucial from a cost-savings standpoint. “We have a methodology for identifying best in class legal professional and legal counsel. The solution uses advanced analytics to adjust for the complexity of each claim/case, thus creating a level playing field for each law firm,” Powell adds.

Earlier this year, in an industry first, GB introduced the Treatment Quality Index, an analytics methodology to measure the quality of care that claimants are receiving. This is achieved by comparing the medical procedures that claimants have undergone with Evidenced Based Medicine Guidelines—which demonstrate whether a given course of care is appropriate (or inappropriate) for a given medical condition. This enables insurers to make more informed decisions while managing claims and partnering with providers.

Evidently, the management at GB are experts in coupling their years of TPA expertise with data analytics-based technology innovations to formulate solutions like these. They are experts at setting up solutions to extract the right kind of data, pair data scientists with industry experts, and integrate the model into the operations. Today, GB is further raising the standards of TPA solution delivery by adopting a unified approach, via their comprehensive RMIS offering.
LUMINOS: A Comprehensive RMIS Offering

GB brings to the table its LUMINOS Product & Platform. The platform is the direct result of answering the market need for a comprehensive and reliable risk management information system (RMIS). “We have created a hybrid solution that takes the best of software solutions and marries it together with the differentiating data and analysis rendered from our total TPA service model—creating a truly unique offering in the market,” says Jennifer Turner, SVP of product management at GB.

We have a methodology for identifying best in class legal professional and legal counsel

Historically, comprehensive RMIS products that meet current risk management challenges were unavailable in the bundled TPA marketplace. As a result, risk managers who utilized TPA services were unable to manage all of the data easily. This impacted their total cost of risk and lowered the potential that data had on their organization’s profitability. LUMINOS is designed to be the single point of entry for all client-facing solutions offered by GB. LUMINOS is synonymous with risk assessment and program performance analytics, as it provides easy management of the day to day tactical reporting and longer-term oversight needs of large and complex risk programs.

All of the general and program-specific factors that impact areas of any modern-day risk management programs can be integrated into the RMIS product suite offerings. Global vantage points help GB’s risk managers uncover and review short and long term program trends. Coupled with this, the intuitive, innovative analytics provide industry-leading, at-a-glance metrics that support their risk mitigation strategies.

Taking Data Visualization to the Next Level

LUMINOS offers engaging operational dashboards, and its sophisticated graphical analytics tools support trend analysis and decision deliberations. Easy to use data drill-down features facilitate immediate claim level access for detailed causal analysis. Simple navigation menus target all LUMINOS features and functions, allowing quick access to modules detailing program performance anomalies. “As an industry innovator, the integration of our new proprietary, graphical interactive dashboard analytics offers unprecedented transparency into adjuster program performance at the desk level,” adds Jennifer. The Claim Strategy Interactive Dashboards provide advanced claim complexity, reserving, and narcotics utilization models.

Facilitating Multiple Use case

GB’s expansive RMIS product suite is designed to meet all of today’s global risk management challenges, supporting collaborative group efforts and individual work styles equally well. LUMINOS provides all of the inquiry, and analytical tools required to successfully manage all the facets of a modern-day risk management program and risk reduction initiatives.

Risk managers’ have noted that LUMINOS product is user-friendly, excels at meeting specific international needs, and accommodates all levels of customization to meet client and group captive niche requirements.
Joe Powell, Senior Vice President, Analytics

One of the company’s global Fortune 500 clients noted that worldwide data collection process timelines dropped from three months to a few weeks, utilizing the LUMINOS based values collection module to drive their global property renewal. Another instance pertains to a nationally recognized leader in the food services industry. They utilized LUMINOS’ data integration capabilities to provide holistic organizational visibility into both occupational and non-occupational leave absences.

Many clients are now engaged in LUMINOS safety and audit offerings in an effort to prevent incidents and claims. The broker community has embraced their newly implemented cross-client functionality, allowing for the analysis of data across their entire book of GB business. “Carrier clients comment on our bundled suite of powerful dashboards and analytical capabilities to meet the needs of their insureds. Hopefully, you are noting a theme here, LUMINOS is a key part of the GB goal to drive demonstrably superior outcomes for our clients,” adds Jennifer.

"We have created a hybrid solution that takes the best of software solutions and marries it together with the differentiating data and analysis rendered from our total TPA service model—creating a truly unique offering in the market"

For the second year in a row, the comprehensive 2019 RMIS survey, published by independent industry veterans David Tweedy and Patrick O’Neill, recognized LUMINOS with top honors for its Net Promoter Score (NPS), a prominent customer satisfaction metric. GB was also recognized as the sole leader in the TPA RMIS space.

Strategic Roadmap

As for the roadmap of LUMINOS, Jennifer mentions that it is the enthusiastic conversations across GB’s varied client base that drives product enhancement. New module development, feature expansion, and advanced interactive dashboards dominate LUMINOS product suite enhancement activities for 2020. The company’s recently introduced Carrier Policy Solution (CPS), also included in the LUMINOS product family, offers clear leadership in the carrier space. GB’s 2020 initiatives also include the continued build-out of consolidated policy information at the issued level, facilitating deductible and limit tracking, along with erosion management.

The development of industry verticals (i.e. retail, restaurants, religious practice, construction, transportation), vertical trends, scorecards, and benchmarks detailing program performance by (and across) market segments are also included in the future LUMINOS product suite plans. The company will continue to build on its recently introduced Legal Scorecard, which details law firm performance at the client and book of business levels. They will also extend additional Managed Care interactive dashboards beyond the transactional focused solutions typically available from TPAs and carriers. “LUMINOS will continue to guide our clients to future success in managing all aspects of Total Cost of Risk and in achieving demonstrably superior outcomes,” concludes Jennifer.

Gallagher Bassett

Rolling Meadows, IL

Jennifer Turner, SVP of Product Management and Joe Powell, Senior Vice President, Analytics

LUMINOS is synonymous with risk assessment and program performance analytics, as it easily manages the day to day tactical reporting, and longer term oversight needs, of large, complex risk programs