This is an excerpt from CaseGlide’s Definitive Guide to Transformational Improvement in the Insurer LegalDepartment which you can download here.
Issues in Insurer Legal Departments:
- Background on Insurance Claims Litigation Case Management Software Systems:
The issues in insurer legal departments stem from one simple truth that is rarely uttered – the legal system is not an effective place to adjust insurance claims. Although insurers have a duty to pay covered claims and deny those for which there is no coverage, the truth is that lawyers, judges, and juries are more likely to make matters worse than uphold a policy provision. Long ago, intelligent insurers acknowledged that they owed a duty to their shareholders and policyholders to prevent the courtroom from unnecessarily draining more money out of the policyholders’ reserves.
With that acknowledgment came the responsibility to try to control the litigation process as much as possible internally, rather than delegate claims to lawyers. Unfortunately, most insurers would agree that their legal departments have not made enough progress in managing litigation to solve the fundamental problems. In this article, we discuss the evolution of the insurer legal department and what the leading insurers are doing today to manage litigation with technology.