What does Predictive Analytics or Modeling mean? Read on to discover the definition & meaning of the term Predictive Analytics or Modeling - to help you better understand the language used in insurance policies.
Predictive Analytics or Modeling
The discipline that analyzes current and historical facts to make predictions about future events. It is a much deeper dive than traditional reports. And PA involves more than just claims data as it also seeks information from as many divergent sources affecting claims as possible. In reviewing claims leakage, PA will focus on areas such as fraud detection: either missed through inadequate investigation or identification of actual fraud (i.e., revealing a coterie of law firms, chiropractors, auto body shops, and professional claimants working together).
We hope the you have a better understanding of the meaning of Predictive Analytics or Modeling.