{
  "tool_id": "art-257-calculate-claims-stp-economics",
  "note": "Claims STP economics ROI model. Vector 1: high-volume insurer moving 40%->75% STP rate. Vector 2: smaller insurer with leakage modeling. --update will compute exact NPV/IRR values.",
  "vectors": [
    {
      "name": "large_insurer_stp_expansion",
      "description": "100K claims/year, 40% current STP rate, 75% target. Manual handling $180/claim, automated $25/claim, $5M implementation, $500K annual license. Positive NPV over 5 years at 10% discount rate.",
      "policy_parameters": {
        "annual_claims_volume": 100000,
        "current_stp_rate_pct": 40,
        "target_stp_rate_pct": 75,
        "manual_handling_cost": 180,
        "automated_handling_cost": 25,
        "implementation_cost": 5000000,
        "annual_license_cost": 500000,
        "discount_rate_pct": 10,
        "projection_years": 5
      },
      "output_payload": {
        "npv": 15565018.22,
        "irr_pct": 105.54,
        "payback_years": 0.92,
        "net_annual_benefit": 5425000,
        "annual_handling_savings": 5425000,
        "net_leakage_impact": 0,
        "leakage_increase": 0,
        "leakage_reduction": 0,
        "current_annual_cost": 12300000,
        "target_annual_cost": 6875000,
        "cost_reduction_per_claim": 54.25,
        "cost_reduction_pct": 44.11,
        "current_avg_cost_per_claim": 123,
        "target_avg_cost_per_claim": 68.75,
        "stp_rate_improvement_ppt": 35,
        "current_stp_claims": 40000,
        "target_stp_claims": 75000,
        "current_manual_claims": 60000,
        "target_manual_claims": 25000,
        "projection_years": 5,
        "discount_rate_pct": 10,
        "annual_cashflows": [
          {
            "year": 1,
            "cashflow": 5425000,
            "discounted_cashflow": 4931818.18
          },
          {
            "year": 2,
            "cashflow": 5425000,
            "discounted_cashflow": 4483471.07
          },
          {
            "year": 3,
            "cashflow": 5425000,
            "discounted_cashflow": 4075882.79
          },
          {
            "year": 4,
            "cashflow": 5425000,
            "discounted_cashflow": 3705348
          },
          {
            "year": 5,
            "cashflow": 5425000,
            "discounted_cashflow": 3368498.18
          }
        ],
        "table_version": "CLAIMS-STP-ECONOMICS-V1.0-2025",
        "table_source": "McKinsey Insurance 2024 (claims automation ROI benchmarks); Accenture Claims Transformation 2025; Majesco Claims Technology Survey 2024; NAIC Claims Process Innovation Working Group 2023.",
        "regulatory_basis": "NAIC Claims Process Innovation Working Group (2023); IAIS ComFrame (proportionality in claims governance). STP automation economics benchmarks per McKinsey Insurance 2024 and Majesco Claims Technology Survey 2024.",
        "pii_note": "ZERO PII: aggregate portfolio metrics and cost inputs only. No claimant, policyholder, or claim-event personal data enters this kernel.",
        "not_legal_advice": "Not legal, actuarial, or investment advice. STP investment decisions require enterprise business case review and actuarial sign-off on leakage assumptions."
      },
      "golden_hash": "818599125168faeff307c53dddaa8bf39097c66f4ae0d90aa23b3947d867c373"
    },
    {
      "name": "mid_market_with_leakage",
      "description": "30K claims/year, 20% to 60% STP, $150 manual cost, $30 automated, $2M implementation. $500 avg claim payment, 3% manual leakage vs 1.5% STP leakage. Leakage modeling shows net leakage improvement.",
      "policy_parameters": {
        "annual_claims_volume": 30000,
        "current_stp_rate_pct": 20,
        "target_stp_rate_pct": 60,
        "manual_handling_cost": 150,
        "automated_handling_cost": 30,
        "implementation_cost": 2000000,
        "annual_license_cost": 200000,
        "average_claim_payment": 500,
        "leakage_rate_manual_pct": 3,
        "leakage_rate_stp_pct": 1.5,
        "discount_rate_pct": 10,
        "projection_years": 5
      },
      "output_payload": {
        "npv": 3799903.76,
        "irr_pct": 71.32,
        "payback_years": 1.31,
        "net_annual_benefit": 1530000,
        "annual_handling_savings": 1440000,
        "net_leakage_impact": 90000,
        "leakage_increase": 90000,
        "leakage_reduction": 180000,
        "current_annual_cost": 3980000,
        "target_annual_cost": 2540000,
        "cost_reduction_per_claim": 48,
        "cost_reduction_pct": 36.18,
        "current_avg_cost_per_claim": 132.67,
        "target_avg_cost_per_claim": 84.67,
        "stp_rate_improvement_ppt": 40,
        "current_stp_claims": 6000,
        "target_stp_claims": 18000,
        "current_manual_claims": 24000,
        "target_manual_claims": 12000,
        "projection_years": 5,
        "discount_rate_pct": 10,
        "annual_cashflows": [
          {
            "year": 1,
            "cashflow": 1530000,
            "discounted_cashflow": 1390909.09
          },
          {
            "year": 2,
            "cashflow": 1530000,
            "discounted_cashflow": 1264462.81
          },
          {
            "year": 3,
            "cashflow": 1530000,
            "discounted_cashflow": 1149511.65
          },
          {
            "year": 4,
            "cashflow": 1530000,
            "discounted_cashflow": 1045010.59
          },
          {
            "year": 5,
            "cashflow": 1530000,
            "discounted_cashflow": 950009.62
          }
        ],
        "table_version": "CLAIMS-STP-ECONOMICS-V1.0-2025",
        "table_source": "McKinsey Insurance 2024 (claims automation ROI benchmarks); Accenture Claims Transformation 2025; Majesco Claims Technology Survey 2024; NAIC Claims Process Innovation Working Group 2023.",
        "regulatory_basis": "NAIC Claims Process Innovation Working Group (2023); IAIS ComFrame (proportionality in claims governance). STP automation economics benchmarks per McKinsey Insurance 2024 and Majesco Claims Technology Survey 2024.",
        "pii_note": "ZERO PII: aggregate portfolio metrics and cost inputs only. No claimant, policyholder, or claim-event personal data enters this kernel.",
        "not_legal_advice": "Not legal, actuarial, or investment advice. STP investment decisions require enterprise business case review and actuarial sign-off on leakage assumptions."
      },
      "golden_hash": "24e7c54baeac2d6458587f5c287d79a4cc43bc1114061db238ed98b4acb7ef1d"
    }
  ]
}