Experts Discuss Overcoming Cognitive Bias in Decision Making at CLM 2023 Focus Conference

At the CLM 2023 Focus Conference in Manhattan, a compelling session titled ‘Overcoming Bias in Complex Decision Making and Negotiations’ took center stage, led by notable figures in the insurance industry: Lee Wright from Tokio Marine HCC, Scott Rembold, a board-certified construction lawyer, and Kristina Ashcraft from MC Consultants. Their discussion revolved around the nature of cognitive bias, its omnipresence in our everyday decision-making, and strategies to mitigate its impact, especially in complex professional scenarios.

Wright argued that cognitive bias, while often seen negatively, is a natural and necessary part of human cognition, aiding in routine decision-making. However, he cautioned against its unchecked influence in complex decision-making, as it can lead to flawed outcomes. The session highlighted the case of Gazella Bensreiti, a Muslim woman denied entry to a Denver Nuggets game, to illustrate how biases can lead to prejudiced conclusions.

The speakers conducted interactive exercises to demonstrate the power of bias. One involved audience assumptions about the security guard in Bensreiti’s incident, revealing preconceived notions about race and gender. Another exercise used lists of names and descriptions, like Adolf Hitler and Steve Jobs, showing how limited information skews perception.

Rembold emphasized the importance of acknowledging cognitive biases in the legal and insurance fields. He suggested expanding one’s perspective to include often-overlooked information, ensuring a more comprehensive analysis. Ashcraft touched on the relevance of bias in evaluating claims, highlighting how personal attributes like age and occupation could unconsciously influence decision-making.

The session concluded with a call for diversity in decision-making processes, particularly in claims analysis. Different perspectives, the panelists argued, can provide a more balanced view, preventing biases from dominating the decision-making process. This approach is crucial for achieving fairness, justice, and ethical outcomes in the complex world of claims and negotiations.