Mine Your Business—A Novel Application of Association Rules for Insurance Claims Analytics

This paper describes how a data mining technique known as Association Rules can be applied in the analysis of insurance data to gain useful and actionable business insights. The technique is illustrated via its application to Workers Compensation (WC) insurance data. This case study shows how the Association Rules technique can be used to potentially reduce claim costs, manage claims, and help prevent injuries at workplace. While this case study uses WC data for the case study, the analytic technique presented in this paper can be extended to other types of insurance data.

Keywords: association rule; workers compensation; Apriori; confidence; lift; support