Skyward Specialty chooses Milliman Datalytics-Defense for its AI-enabled legal spend insights

Rhea-AI Summary

Skyward Specialty Insurance Group, Inc. (NASDAQ: SKWD) has selected Milliman Datalytics-Defense as its platform for processing defense cost invoices. The tool employs data mining algorithms to detect patterns in attorney billing practices, providing real-time, actionable intelligence to help insurers make better business decisions and reduce overall litigation spend.

Insights

Insurance Industry Analyst

The partnership between Skyward Specialty Insurance Group and Milliman for the use of the Datalytics-Defense platform represents a strategic enhancement in the specialty property and casualty (P&C) insurance market. The adoption of advanced data analytics tools like Datalytics-Defense is indicative of an industry trend where insurers leverage technology to streamline operations and improve cost efficiency. This tool's ability to analyze defense cost invoices with data mining algorithms allows for more effective management of legal expenses, which can constitute a significant portion of an insurer's loss adjustment expenses (LAE).

By utilizing predictive modeling to allocate legal defense resources more efficiently, Skyward Specialty may achieve a competitive advantage by potentially lowering their LAE ratio, which is a critical metric in evaluating an insurer's profitability. This could lead to an improved combined ratio, another key performance indicator in the insurance sector, which measures the profitability by adding the LAE and underwriting expenses to the amount of money paid out in claims, divided by the premium earned.

Financial Analyst

The implementation of Milliman's Datalytics-Defense by Skyward Specialty Insurance Group could have tangible impacts on their financial performance. By enhancing claims handling efficiency and potentially reducing litigation expenses, Skyward Specialty may be able to report improved margins. For investors, operational efficiencies gained from such technology can translate into better earnings over time, as reduced claim costs directly improve the bottom line.

Additionally, the market often reacts favorably to companies that proactively adopt innovative solutions to drive efficiency. This adoption could be perceived as a commitment to maintaining a competitive edge and could influence investor sentiment positively. In the long term, if the technology proves to reduce costs and improve claim outcomes, it could also lead to more favorable reinsurance terms and improved capital management for Skyward Specialty.

Technology and Innovation Analyst

Milliman's Datalytics-Defense platform uses artificial intelligence (AI) and machine learning algorithms to provide insurers with insights into attorney billing practices and litigation management. This is an example of how AI is being applied within the insurance industry to not only cut costs but also enhance decision-making processes. The predictive attorney scoring model is particularly innovative, as it allows insurers to quantify the effectiveness of legal counsel and optimize the allocation of defense resources.

The use of such AI-driven tools is part of a broader digital transformation within the insurance industry, which aims to improve customer service, increase transparency and reduce fraud. For Skyward Specialty, adopting such a platform could serve as a differentiator in the market, showcasing their commitment to utilizing cutting-edge technology to benefit their clients and streamline internal processes.

SEATTLE--(BUSINESS WIRE)-- Milliman, Inc., the premier global consulting and actuarial firm, today announced that Skyward Specialty Insurance Group, Inc.™ (NASDAQ: SKWD) ("Skyward Specialty"), a leader in the specialty property and casualty (P&C) market, has chosen Milliman Datalytics-Defense^® as its platform for processing its defense cost invoices. Milliman Datalytics-Defense employs powerful data mining algorithms to help insurers detect patterns in attorney billing practices, delivering better understanding of both costs and defense strategies.

"At Skyward Specialty we seek out forward-thinking, tech-enabled solutions to augment our expertise and provide efficiency for our partners," said Sean Duffy, Skyward Specialty executive vice president and chief claims officer. “Working with Milliman Datalytics-Defense enables us to continue to deliver top-tier claims handling processes and service that really provide value to our clients.”

Milliman Datalytics-Defense is a web-based tool and is available on a subscription basis. The platform provides real-time, actionable intelligence through responsive reporting dashboards that are built upon a robust data warehouse. The tool’s data-driven approach helps insurers make better business decisions, manage counsel more effectively, and reduce overall litigation spend. Additionally, Milliman Datalytics-Defense's predictive attorney scoring model enables insurers to allocate legal defense dollars to the most effective attorneys based on cost vs. outcome.

"We are excited to collaborate with Skyward Specialty to assist them in bringing additional value to their clients," says Chad C. Karls, Milliman principal and consulting actuary. "The ability to supplement Skyward’s internal expertise with detailed and actionable data derived from our A.I.-based machine learning algorithms will help to differentiate Skyward from its peers.”

About Milliman

Milliman is among the world’s largest providers of actuarial, risk management, and technology solutions. Our consulting and advanced analytics capabilities encompass healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at Milliman.com.

About Skyward Specialty

Skyward Specialty (NASDAQ: SKWD) is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through eight underwriting divisions -- Accident & Health, Captives, Global Property & Agriculture, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S.

Skyward Specialty's subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A- (Excellent) by A.M. Best Company. For more information about Skyward Specialty, its people, and its products, please visit skywardinsurance.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240103788885/en/

Chad Karls

Milliman, Inc.

Tel: 646.473.3021

chad.karls@milliman.com

Source: Milliman, Inc.

FAQ

What platform has Skyward Specialty Insurance Group, Inc. (NASDAQ: SKWD) chosen for processing defense cost invoices?

Skyward Specialty has chosen Milliman Datalytics-Defense as its platform for processing defense cost invoices.

How does Milliman Datalytics-Defense help insurers?

Milliman Datalytics-Defense employs data mining algorithms to detect patterns in attorney billing practices, providing real-time, actionable intelligence to help insurers make better business decisions and reduce overall litigation spend.

What does Milliman Datalytics-Defense's predictive attorney scoring model enable insurers to do?

The predictive attorney scoring model enables insurers to allocate legal defense dollars to the most effective attorneys based on cost vs. outcome.

What is the benefit of collaborating with Milliman Datalytics-Defense for Skyward Specialty?

Collaborating with Milliman Datalytics-Defense enables Skyward Specialty to bring additional value to their clients by supplementing their internal expertise with detailed and actionable data derived from A.I.-based machine learning algorithms.