CaseGlide is excited to present the “Hurricane Litigation Strategy Series.” This series of bulletins will help you and your team navigate the new challenges and opportunities presented by Hurricane Irma.
In Bulletin #1, we will help you prioritize, strategize, and we will provide a glimpse into our customization plan for our clients. We will also share our plan to meet with our clients immediately to put these plans into motion.
In Bulletin #2, we will share important projections for Irma, including:
- Lawsuit volume
- Average expense and indemnity total
In Bulletin #2, we will also explore the impact of reinsurance on insurers’ objectives and expense, while discussing key performance indicators and benchmarks. Bulletin #2 will conclude by describing the levers to pull to optimize litigation performance, including reporting and analytics, workflow and automation, adjusters and panel counsel, and litigation scope of work.
CaseGlide Hurricane Litigation Strategy Bulletin #1
- Cost Control: Aim to continue progress towards reducing legal fees and settlements by 25%.
- Closure Rate: Closely monitor your closing percentage. Florida homeowners insurers have become very effective at closing cases, and maintaining that momentum is crucial.
- Executive Reporting: Develop a frequent executive reporting program that provides clear transparency into litigation.
Litigation Department Strategies:
To meet new demands, litigation executives must prioritize high impact strategies over low value tactics.
- Build the Team: Most Florida homeowners insurers have already maximized their efforts to build strong claims litigation teams, and the same companies will be competing for the same candidates. The better the team, the better the chance at implementing your company’s strategy.
- Address Volume Concerns: In most circumstances, staff will see their caseloads double. Plan the tactics for handling that volume and routine check-ins. The litigation executive should encourage his or her team to avoid low-value tasks.
- Strategize for Familiar Opponents: Top plaintiffs’ attorneys will increase their caseloads. As these attorneys get even less accessible, plan how to be relentless and creative to get cases closed.
- Develop Case Buckets: Categorize cases. It is easier to have five discussions about one hundred cases each than one discussion per each of the five hundred cases. Bucketing also enables precise reporting on higher priority cases.
- Develop Personnel Pods: Along the same lines as “bucketing,” develop personnel pods to handle categories of cases. Pods may specialize by location, coverage decision, potential exposure, plaintiffs’ attorney, case type, and other important factors.
Hurricane Claims Tactics:
Here are some of the hurricane tactical issues to consider. A word of caution: the more time spent on the tactics, the less time available to execute the strategies.
- Determine the Impact of Higher Deductibles: Higher hurricane deductibles should theoretically limit low severity case litigation; however, insureds’ dissatisfaction with below-deductible claims might create a new category of litigation. Litigation departments must determine how to address this issue.
- Confirm Reinsurance Coverage Application: Reinsurance will cover most if not all litigation expenses, including the cost of CaseGlide. Litigation departments will create processes to ensure these expenses are covered.
- Quickly Identify Claims Handling and Timing Concerns: Irma’s size and timing imposed an unparalleled tax on insurers’ claims handling resources. Irma required adjusters to be present throughout Florida, and many of these adjusters were still handling Hurricane Harvey claims. Expect claims handling and timing concerns and ensure early identification of same.
- Prepare for Problematic Lag Claims: The earliest reported claims might be the easiest. Unless another hurricane hits, Hurricane Wilma taught us that these hurricane claims will be rolling in for years. The later they are reported, the more problematic they will be. Insurers should develop a clear strategy for these claims.
- Avoid Legal Defense Surprises: One of the biggest fallouts from the AOB litigation crisis was the difficulty and time spent mounting legal defenses. Insurers must avoid the legal defense surprises that arise out of Hurricane Irma.
CaseGlide will work with clients to support the priorities of transparency and efficiency. At the early stages, CaseGlide has identified the following reporting and workflow efficiency upgrades:
- Reporting and Analytics: CaseGlide’s upgrades coming this month include real-time data visuals into all litigation demographics, plaintiffs’ attorneys’ trends, and defense attorney statistics. Importantly, the upgrades allow insurers to automatically identify cases with a high potential for settlement. CaseGlide’s Executive Dashboard provides insurers with top-level KPI evaluations and alerts. With CaseGlide’s reports and analytics as a foundation, insurers have the tools to mitigate the impact of the increased caseload.
- Workflow Efficiencies: CaseGlide and its insurers will develop high quality, Irma-specific case intake procedures, tasks, communication protocols, and automated legal documents. Insurers using CaseGlide’s workflow efficiencies achieve proven substantial reductions in outcome expense and save endless hours in document administration and review.
CaseGlide’s efficiency and reporting features are crucial to mitigating the impact of the inevitable increasing caseloads. As we continue to identify our clients’ priorities, we will supplement these customizations.
CaseGlide Hurricane Litigation Strategy Meetings
CaseGlide will conduct in-person client meetings to discuss projections, objectives, and Irma-related customizations to the CaseGlide software. Our team is available to hold meetings during the weeks of October 9 and 16. Please contact us at [email protected] or call (877) 608-8591 to schedule your meeting.