Predict Claim Severity Escalation

Some initially minor claims can unexpectedly escalate in severity and cost. Early identification allows for proactive management. LLMs can analyze initial claim data and early development patterns, comparing them to historical claims, to predict the likelihood of a claim escalating beyond initial reserves. This allows for earlier intervention by senior adjusters or specialized teams. An LLM might flag a seemingly minor injury claim showing early signs associated with long-term disability outcomes.