Claims Trend Monitoring Agent

Claim trends drive pricing and underwriting, but a shift caused by a coding change or late reporting can look like a real trend. Each month this agent tracks claim frequency and severity by line, region and segment, compares them with prior periods and expected values, and tests whether changes are larger than normal noise. A change over two standard deviations is flagged, and severity up more than 10 percent year on year is drilled down to find drivers such as a loss type, a region or repair costs. Before calling anything a trend, it checks for data issues. If it finds coding changes or reporting lags, it adjusts and recalculates, then checks again. It writes a short trend report with charts. The analyst approves before the report goes to pricing and underwriting. Edge case: a claims system change recoded water damage, so the agent adjusts before comparing years.