CLARA Analytics, a provider of artificial intelligence (AI) technology for insurance claims optimization, has launched CLARA Intelligence-as-a-Service (IaaS), a new solution designed to provide claims executives with strategic insights by leveraging the company’s extensive claims AI dataset.
Claims executives currently face ongoing challenges related to loss and expense accuracy, social inflation, reserving adequacy, and the need for enhanced control over complex claims. These issues underscore the demand for solutions that can offer deeper insights into claims operations and financial performance.
CLARA IaaS aims to address these challenges by drawing on millions of records over more than a decade, representing the largest claims AI dataset of bodily injury cases across workers’ compensation, auto liability, and general liability. This data allows insurance carriers and self-insured organizations to strategically query their own practices, identify aberrations, and discover opportunities to optimize reserving and settlement outcomes.
The solution offers a high degree of configurability, adaptable to specific business needs. It can consider variables such as state-specific rules (legal, regulatory, compliance), litigation factors (jurisdictional trends, plaintiff attorneys), hazards (class codes, occupation), damage attributes (body parts, nature and cause codes), and geographic dimensions (state, county, zip code). This capability facilitates “apples-to-apples” comparisons, providing a clear understanding of an organization’s performance relative to its peers and highlighting specific areas for improvement.
Heather H. Wilson, CEO of CLARA Analytics, stated, “The breadth and depth of our dataset is unmatched. When carriers want to know what’s truly happening in their business and where they stand in the market, there’s no better source of truth. CLARA IaaS gives insurers insights they’ve never had before — the ability to clearly see where they stand, anticipate challenges, and make decisions with confidence.”Key features of CLARA IaaS include Industry Benchmarking, which provides customized benchmarks based on a contributory database that accounts for factors like jurisdiction and hazard grades. Expert-Curated Reports offer in-depth analysis of industry pressures and trends. Standardized KPI Tracking ensures consistent metrics across claims, litigation, and reserving, while a Customizable Experience allows for tailored reporting, visualizations, and analytics.
Built upon CLARA’s existing products, IaaS is designed to provide immediate value. Its orchestrated data architecture enables customers to analyze normalized data against industry benchmarks or their own historical data. A significant benefit observed in testing is its ability to identify instances of over- or under-reserving at various points based on loss triangles, directly impacting balance sheet optimization and shareholder value creation. Over-reserving, for example, can inflate reported loss ratios and obscure true underwriting performance.
The solution empowers claims leaders to make strategic decisions with comprehensive market visibility, moving beyond limited internal perspectives. “This isn’t just an improvement to claims management; it’s a shift toward proactive, strategic leadership,” Wilson added. “With CLARA IaaS, insurers finally have the clarity and control they need to drive better outcomes.” CLARA IaaS is currently available for workers’ compensation claims, auto liability, and general liability.
CLARA Analytics, founded in 2017 and headquartered in California’s Silicon Valley, is an AI as a service (AIaaS) provider focused on improving casualty claims outcomes for insurance carriers, MGAs, reinsurers, and self-insured organizations. Its CLARAty.ai platform uses image recognition, natural language processing, and other AI techniques to extract insights from claim-related documents, providing augmented intelligence to claim professionals to help reduce costs and optimize outcomes.
