Michael Paczolt

ACAS, FCAS, MAAA

Principal & Consulting Actuary

Chicago, IL, US

Mike Paczolt is a principal in the Chicago Property & Casualty Practice of Milliman. He joined the firm in 2007.

Experience

Mike manages Milliman Nodal®, a comprehensive property, and casualty claim analytics platform that uses AI to identify claims for early intervention to manage and reduce claim costs optimally.

Mike also practices as an actuary for insurers, captives, self-insured/large-deductible programs, pools, MGAs, and start-up ventures. Mike's expertise is in property and casualty insurance, including workers' compensation, professional liability, general liability, auto liability, products liability, warranties, extended warranties and service contracts, and other unique risks.

Publications and Presentations

Professional Designations

Fellow, Casualty Actuarial Society
Member, American Academy of Actuaries

Education

BS, Actuarial Science, University of Illinois at Urbana-Champaign
MS, Predictive Analytics, Northwestern University

Publications

Read their latest work

Article

Top 5 mistakes in building claims AI for P&C insurance

08 May 2024 - by Michael Paczolt

We explore the top five mistakes that property and casualty insurers make when building claims artificial intelligence, noting the advantages of purchasing a ready-made solution.

Article

Industry survey: Tackling claims department challenges with AI

19 March 2024 - by Michael Paczolt, Matthew Murray

By embracing large language models, claims departments can use AI to enhance accuracy and free up professionals for more complex tasks.

Article

Elevate workers' comp claims with medical benchmarking

14 November 2023 - by Michael Paczolt

In workers' compensation, medical claim benchmarking provides clarity on where an organization stands, and offers insights on areas for targeted improvement.

Article

5 things to know about large language models in claims management

30 August 2023 - by Michael Paczolt

By leveraging the strengths of large language models (LLMs), insurers will gain a competitive advantage in the challenging markets they face today.

Article

8 steps to a successful AI adoption strategy for claims departments

10 April 2023 - by Michael Paczolt

We outline eight steps for companies to integrate AI in their claims processes, potentially leading to substantial improvements in efficiency and productivity.

Article

The role of NLP and AI in third-party litigation funding: How insurers can leverage data analytics to level the playing field

10 April 2023 - by Michael Paczolt

To combat third-party litigation funding (TPLF), insurers can invest in data and analytics to make informed decisions about claims handling and strategies.

Article

Using group health data and AI to benchmark medical costs in workers’ compensation: Frequently asked questions

23 February 2023 - by Michael Paczolt

Thanks to advances in artificial intelligence (AI) and predictive analytics, as well as accessibility to group health data, workers’ compensation payers can quickly identify opportunities to lower claim costs through the right treatment plan, the right provider to execute the treatment plan, and the right price.

Article

Using predictive analytics and AI in insurance claims

25 January 2023 - by Michael Paczolt

Learn how to improve the outcome of your claims by integrating your data with AI.

Article

How to reduce total cost of risk using artificial intelligence and machine learning

23 July 2022 - by Melissa Huenefeldt, Michael Paczolt

This article discusses how artificial intelligence and machine learning are used to gather comprehensive claims data from structured and unstructured data fields, solving complex problems and reducing total cost of risk.

Article

Medical benchmarking: Comparing WC claims to group health to lower your medical costs

20 June 2022 - by Michael Paczolt, Juliet Spector

With medical expenses in workers’ compensation continuing to rise, data is the key to developing reliable frameworks to understand and benchmark the costs.