5 Techniques Insurers Can Use to Rein In Litigation Rate
Insurers have always paid close attention to their KPIs to assess overall performance and identify areas for improvement. In recent years, in an increasingly competitive market, finding such areas has become more challenging. Almost daily, the news features stories of P&C insurers struggling with rising loss ratios, particularly in property, liability, and worker’s comp lines. With that in mind, managing the litigation rate is critical for insurers to successfully lower their cost per claim.
Fortunately, insurers can now leverage modern core technology in several ways to improve their litigation rate:
- Data Analytics and Predictive Modeling: Modern core systems equipped with advanced data analytics and predictive modeling capabilities can analyze vast amounts of data to identify patterns and trends indicative of potential litigation risks. By analyzing historical claims data, insurers can predict which claims are more likely to result in litigation and take proactive measures to mitigate those risks.
- Early Case Assessment: Modern core systems can facilitate early case assessment by providing insurers with tools to evaluate the merits of a claim quickly. By leveraging data analytics and artificial intelligence, insurers can assess the potential value of a claim, evaluate liability, and determine the likelihood of success in litigation. This enables insurers to make informed decisions about whether to settle a claim early or proceed to litigation.
- Automated Workflows: Modern core systems streamline claims processing workflows through automation, reducing manual effort and improving efficiency. Automated workflows ensure that claims are handled consistently and in compliance with regulatory requirements, reducing the likelihood of errors and disputes that could lead to litigation.
- Integration with Legal Resources: Integration with legal databases and resources within modern core systems provides insurers with immediate access to relevant case law, statutes, and legal precedents. This enables insurers to make informed decisions throughout the claims process and build stronger defenses against potential litigation.
- Enhanced Communication and Collaboration: Digital collaboration tools integrated into modern core systems facilitate communication and collaboration among claims adjusters, legal teams, and external parties involved in litigation. Real-time communication and document sharing enable stakeholders to exchange information quickly, resolve disputes, and negotiate settlements effectively, reducing the likelihood of litigation.
By leveraging modern core technology in these ways, insurers can improve their litigation rate by identifying and mitigating potential risks early, streamlining claims processing workflows, and enhancing communication and collaboration throughout the claims process. This ultimately leads to reduced litigation costs, improved outcomes, and better risk management for insurers.
To see first-hand how your organization can significantly improve litigation rate with SpearClaimsTM, our award-winning claims system built by industry experts on a modern no code/low code platform that delivers the power of built-in AI and Analytics while lowering your total cost of ownership, Schedule a Demo.
To discover how Spear’s solutions are accessible to insurers of all sizes, Request Pricing.
