Litigation Claims Management for Insurers
De BISAWiki
Litigation Claims Management for Insurers Insurers spend up to 80% of their operational budget on preferred vendors and key suppliers. Litigation is by far, the largest line item and attracts the most attention. Without the establishment of clear guidelines and accountability, the risk of substandard performance, slowed disposition and increased payout could ultimately mean large settlements and increased costs. Keys to successful litigation claims management include:
• The establishment a preferred vendor program • Clearly identifying rates, budgets and performance expectations. • Electronically sending and tracking all documents and correspondence. • Monitoring compliance, performance and financial results. • Identifying trends, outliers and early settlement opportunities.
The shorter the life of the claims file, the lower settlement amount and ultimately, the litigation expense. Laser focus on identifying and clearing backlogs, reducing disposition times and judicious closure is the answer to decreasing both loss and expense ratios. Manually auditing a sampling of files each month, half of which are already closed, provides a problem for insurers. Claims executives need a 360* overview of every open file in litigation and the ability to monitor files by policy type, coverage, budget, reserve and phase. This allows insurers to quickly identify and respond to files stalled at various phases in the claims funnel, and actively push them forward. Average time to closure and average time by phase as a “percentage of total settlement” are more useful metrics, than traditional “fees as a percentage of total cost” or” hourly rates”.
Some insurers utilize electronic invoice submission and bill review as a litigation management tool. Its functionality is limited to line items produced on an invoice using a universal set of task codes. It has become an adversarial and ineffective tool that manages the invoice, but not the quantum, file or its disposition. An insurer’s ability to actively and globally manage open files (ones that they can still do something about it), is the key to effective and meaningful claims management. Insurers who solely focus on invoice reduction and not performance run the risk of alienating their defense counsel, with no effect on file disposition or settlement amount.
Claims managers need the ability to monitor progress on open files, quickly identify and respond to logjams, while at the same time monitor pre-determined performance, compliance and financial metrics. An insurer’s relationship with their defense counsel should be a joint, collaborative effort to achieve these objectives, not an adversarial one over the invoice amount. A single electronic tool for accomplishing these goals has been elusive –until now! FileIns recently introduced a litigation management product which promises to revolutionize litigation claims management for insurers. It was designed and developed by a seasoned claims executive and provides insurers with a powerful tool that gives insurers the ability to view and access any litigation file across their entire organization on a single platform.
• A secure, collaborative, electronic workspace for all claims handlers (internal and external defense counsel, internal and independent adjusters, reinsurers, subscription partners and risk managers) • On-line document and file transfer with full tracking. • Electronic budgeting, escalating authorizations, and customized reporting. • Self-administered, multi-language capability for a global marketplace.
Robust, drillable reporting functionality allows insurers to review the performance against established criteria. Similar programs attempt elements of what FileIns does, but none combines all features and functionality in a single system. It’s a useful tool that promises to get more done, more efficiently, at a lower cost, and in less time.
Detailed info on Legal Claims Management can be found on the main website.
