System and method for calculating estimated claim costs

A computer-implemented method for estimating insurance claim severity, comprising:

• accessing, by a computer processor, a first data storage device storing data relating to a plurality of insurance claims, the data comprising a plurality of characteristics associated with each of the plurality of insurance claims and total claim cost data associated with each of the claims;
• determining, by the computer processor, a first set of claim characteristics;
• determining, by the computer processor, a plurality of first claims of the plurality of insurance claims, the first claims each having the claim characteristics of the first set;
• determining, by the computer processor, a statistical profile of the claim cost data of the first claims based on the claim cost data associated with each of the first claims;
• determining, by the computer processor, whether the determined statistical profile meets profile criteria;
• responsive to determining that the determined statistical profile meets the profile criteria, associating, by the computer processor, the first set of claim characteristics with a first claim category;
• associating, by the computer processor, each of the first claims to one of a plurality of total cost ranges based on the total cost data associated with the first claims;
• determining, by the computer processor, an average cost per claim year associated with each of a plurality of expense categories for the first claims associated with each of the total cost ranges;
• storing, in a second data storage device, the determined average cost per claim year data;
• and
• displaying, by a display device in communication with the second data storage, device, the determined average cost per claim year data.

A non-transitory computer-readable medium having computer-readable instructions stored thereon, which instructions, when executed by a computer processor, cause the computer processor to:

• access a first data storage device storing data relating to a plurality of insurance claims, the data comprising a plurality of characteristics associated with each of the plurality of insurance claims and total claim cost data associated with each of the claims;
• determine a first set of claim characteristics;
• determine a plurality of first claims of the plurality of insurance claims, the first claims each having the claim characteristics of the first set;
• determine a statistical profile of the claim cost data of the first claims based on the claim cost data associated with each of the first claims;
• determine whether the determined statistical profile meets profile criteria;
• responsive to determining that the determined statistical profile meets the profile criteria, associate the first set of claim characteristics with a first claim category;
• associate each of the first claims to one of a plurality of total cost ranges based on the total cost data associated with the first claims;
• determine an average cost per claim year associated with each of a plurality of expense categories for the first claims associated with each of the total cost ranges;
• and
• output to a second data storage device, for storage, the determined average cost per claim year data.