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Paragon’s Deductible Analysis Recovery Test (DART) & Clean-Up Collection Service helps commercial insurers find, validate, bill and recover unidentified or unbilled third party deductibles (TPD) to improve cash flow, reduce loss ratios and accelerate the recovery process.
DART Identifies Missed and Hidden TPDs
The DART utilizes Paragon’s predictive analytics and data-mining software to find and recover missed and hidden TPDs. The result of the DART analysis provides clients with:
- Five-year historical review of a customer's TPD recovery experience
- Estimation of TPDs missed over the past five years which can still be collected
- Iterative filtering process performed through proprietary, inferential predictive analytics technology
How the DART Process Works
The DART typically begins with a one- to two-day on-site fact finding visit to understand current data processes for identifying, billing and posting TPD recoveries to client claim and accounting systems. We examine the claims processing and policy issuance workflows, learning the IT landscape and vulnerabilities which would cause TPDs to be missed. Additionally, Paragon conducts interviews with appropriate claims, underwriting, IT and recovery personnel to gain insight into their impact on the TPD process. We also work closely with the network administrator to gain remote, read-only access to the IT systems and data required for the DART.
Once the site visit has been completed, for the next 45-60 days Paragon will dedicate a team of technology and insurance professionals to analyze processes and data to maximize the amount of missed deductibles identified. The team will:
- Identify vulnerabilities within the TPD process and data
- Identify, extract and normalize policy, claim and financial transactions
- Input information into Paragon’s proprietary inference software
- Sample results and then repeat analysis steps
Paragon will develop a detailed report showing the methodology of our analysis, a breakdown of missed deductibles by line of business, age and business unit. Paragon will also provide a detailed forecast of the amount of missed TPDs that can still be recovered and the next steps needed to implement the recovery phase.
Timely Billing and Collections
In order to secure the full value of the TPD recovery opportunity identified in the DART, Paragon’s recovery team will immediately begin the billing and collections process. Opportunities are quickly prioritized and validated. Paragon then develops and sends out accurate, customized billing based on client specifications. Our specialized recovery approach expedites TPD collections to ensure that opportunities to collect are not lost due to expiring statutes of limitations or other state-specific issues.
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