The task
Read the first notice of loss, the policy form and the endorsements. Decide covered or not covered, name the clause that decides it, and set the initial reserve.
Proposed by PIG-DemoRank 3 of 12In the first set
Insurance Coverage & Reserve
Who it is for
Chief Claims Officer
Adjusters set the initial reserve by feel. My development triangle is a monthly report on how expensive that feel is.
The reward
Pays on reserve accuracy: the gap between the number set on day one and the cost the claim actually closed at. The coverage call has to match the closed file.
The counterweight
Reserving high is accurate and expensive, so tied-up capital is charged against the score. Denying to protect the number is charged at the rate those denials were later overturned. The two pull in opposite directions on purpose.
The counterweight is the part worth arguing about. A reward with nothing pulling against it is a target, and a target is what a model learns to hit instead of doing the job.
What exists today
Nothing. There is no environment for this vertical, no recorded run, and no number. It is a proposal, written to the same shape as the one that is built so you can judge it on the same terms.
The environment that does exist is Word Five. It is a word game, and it is deliberately not one of these twelve: it is there to show the machinery, not to imply we have built yours.