In 2017, a large insurance carrier challenged our law firm to significantly reduce its legal spending and cycle times without any material uptick in indemnity costs or compromise to the quality of legal services.
Last year, the carrier publicly reported that the program we jointly developed was responsible for closing 25% of the carrier's claims litigation annually with an average reduction in legal costs of 49% on closed files, which has led to millions of dollars in cost savings to the carrier.
Over the past five years we have implemented, tested and refined numerous measures to deliver those results. Along the way, we have learned a lot about how a law firm can deliver more value to an insurance carrier and its policyholders.
Here are three critical items that any carrier working with outside defense counsel should consider and discuss with counsel.
