Milliman Datalytics-Defense is an advanced analytics platform designed to extract insights from defense cost invoices, helping to develop cost-effective claims defense strategies. It addresses challenges like inconsistent litigation management, inaccurate case reserves, and inefficiencies in billing, utilizing proprietary data mining algorithms for better analysis compared to traditional methods. The platform provides benefits such as improved efficiency, identification of best practices, and significant cost savings for clients in the insurance industry.

1. Trever Mertz
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Milliman Datalytics-Defense®

2. Datalytics-Defense is an advanced analytics platform
which unlocks hidden intelligence from defense cost
invoices allowing for the development of cost-effective
claims defense strategies.
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Solution
Milliman Datalytics-Defense®.
Uncovering patterns and anomalies in your
litigation costs shows you what works and
what doesn’t work. Datalytics-Defense
analyzes your firm’s performance.
 Helping you to streamline invoice review
 Flag questionable line items
 Reduce costs
 Discover best practices that can applied
firm-wide
Problem
The challenge is making sense of litigation
costs.
 Inconsistent litigation management
processes among claims professionals and
counsel.
 Difficulty in accurately estimating case
reserves.
 Inefficient utilization of expensive resources.
 Inability to track and enforce billing and
claim guidelines.
Improve claims defense strategies and reduce costs by unlocking hidden intelligence in your data
Milliman Datalytics-Defense
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Why Datalytics-Defense?
Competitors: Rely on UTBMS (the Uniform Task
Based Management System) codes to classify legal
services performed by a legal vendor in an electronic
invoice submission. (Developed in the Mid-90’s)
Datalytics-Defense: Rely on intelligence extracted
from the attorney invoices through proprietary data
mining algorithms. This uniquely consistent and
comprehensive data is then coupled with our subject
matter expertise to deliver actionable insights to
better control ALAE costs.
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Differentiators
(Enterprise Legal Management system, e-Billing, or Legal Spend Management tool)
Subject matter expertise
built into the technology and
reporting, designed
specifically for the insurance
industry.
Advanced and proprietary
data mining algorithms
produce consistent and
insightful data compared
to the inconsistent and
insufficient data produced
by UTBMS codes.
Complete system integration
including: claim data,
document management,
payment reconciliation,
timekeeper rates, and
proprietary Datalytics
created data.
Advanced analytics
helps identify best claims
defense practices which
can be implemented
across the organization.
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Benefits That Are Proven
Benefits
Intelligence
Extract critical intelligence from defense counsel
invoices using advanced algorithms
Efficiency
Achieve speed and efficiency in managing invoices
with built-in insurance expertise.
Best practices
Identify and implement best practices across your
roster of law firms
Peer benchmarking
Compare your cost and performance against data
from law firms and other insurers.
Predicted vs. actual results
Compare actual and predicted results using
advanced statistical modelling.
Datalytics-Defense was designed by
Actuaries with a deep understanding
of the insurance business. Because
we specialize in insurance, our clients
feel confident in our solution and
100% have renewed with us each
year since inception.
Milliman Datalytics-Defense combines detailed auditing rules, proprietary data and subject matter
expertise to better understand and control ALAE costs.
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7. Datalytics-Defense Output – Metrics, Reporting and Communication
Examples of the types of graphics and analytics that are available
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Key features
Workflow management: Facilitate timely invoice reviews and
automate manual work with pre-built, customizable
workflows that enable your employees to focus on value-
added tasks.
Customizable audits: Build your requirements into the audit
process for consistency across the organization and
improved identification of billing anomalies.
User notifications: Deliver timely and transparent information
about required actions, invoice status, and other metrics to
improve efficiency.
Meaningful reports: Extract and present critical information to
support improved collaboration and data-driven decision
making.
Interactive dashboards: Give employees powerful, intuitive
tools that democratize insight discovery and ensure
maximum value from data across your organization.
Complete integration: Leverage Datalytics to integrate with
your payment and document management systems, as well
as to centralize access to timekeeper rates and performance
insights.
Comparisons: Individual law firms
Analysis: Expense distribution
Disproportionate hours
Comparisons: Closed stats by law firm
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8. Expected Savings:
Identifying and Quantifying the Returns
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9. Expected Savings – Identifying the “Returns”
Process Efficiencies. Replacing a manual invoice review process with an electronic system eliminates the copying and
routing of invoices, the manual entry of information and keystroke errors resulting reconciliation process with law firms.
Invoice Audit Savings. Datalytics’ business rules auditing engine will identify more savings within an invoice and across
multiple invoices than a manual review process. Examples include incorrect rates (billing, mileage, copying, etc.),
duplicate charges and excessive daily time charges.
Law Firm Management Savings. Using data from our Pooled Client Data, we have developed a model that predicts the
expected number of closed with indemnity claims and expected defense costs given certain claim characteristics.
Comparing a law firm’s actual results versus the Datalytics’ expected results allows for identification of high costs / poor
results firms. By moving claims away from these underperforming firms, significant savings can be realized.
Vendor Cost Strategies. By using the manual invoice module in Datalytics, clients are able to assess its non-attorney
vendor costs and develop cost savings strategies.
Better Practices of Claims Defense. With the detailed data created from Datalytics’ powerful and proprietary data
mining algorithms, Milliman is able to assist in developing a better practice of claims defense by complementing the
claims staff judgement and experience with analytics.
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10. Our data
Defense costs decreased by $14 million per year
The client used Datalytics insights to implement changes, which led to significant defense cost savings
Datalytics enables the
identification of vendors/
partners that provide
enhanced value…
The client was able to develop and
manage a strategy to fuel collaboration
which reduced inefficiencies.
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How to lower defense costs using analytics
Using proprietary data-mining techniques, Milliman Datalytics-Defense® is able to analyze companies’ defense cost invoices and produce actionable
insights. In 2017, a large national medical malpractice writer began using the application; the results below demonstrate the client was able to reduce
their defense costs, all the while maintaining their overall claims-with-payment ratio.
…which enables better overall results
The client working with its partners was able to increase the value proposition enjoyed
by its policyholders while maintaining its low claims with payment ratio.
$28 million
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22
20
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2011 2013 2015 2017 2019
14 hours
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12
11
10
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Time spent on each active invoice, monthly
Before implementation After implementation
The client’s defense
costs payments
Projected
2017 2018 2019
In 2018 attorneys
billed roughly 15% less
per claim per month
After implementation
Q2 2017 Q2 2018 Q2 2019
Closed with payment rates
50%
40
30
20
10
0
900,000+ claims
since 2012
$15B+ in losses and
expenses since 2012
300% growth
since 2017
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11. Trever Mertz-Director of Sales
Thank you
trever.mertz@milliman.com
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PROPRIETARY & CONFIDENTIAL—To Be Reviewed by the Original and Intended Recipient Only