Billing Frustrations Spark Honest Dialogue Between Carriers and Defense Counsel

The CLM Litigation Management Task Force has become a vital platform for addressing long-standing challenges in the insurance defense ecosystem, particularly the strain between carriers and defense counsel over billing practices. Led by a diverse steering committee, including national managing partners and claims officers, the Task Force is promoting transparent and sometimes uncomfortable conversations to bridge gaps and foster collaboration.

At the heart of the dialogue is widespread dissatisfaction with the current billing model—based on billable hours—that many agree incentivizes inefficiency, discourages innovation, and fosters mistrust. Members have voiced concerns over inconsistent billing guideline enforcement and the economic disincentives for adopting technologies like AI. Despite these challenges, there is broad consensus that the system is outdated and ripe for reform.

Steering Committee voices, including those from both law firms and carriers, agree that a shift—possibly toward flat fees or outcome-based compensation—is needed, but structural inertia makes immediate change difficult. Yet, optimism remains high as stakeholders recognize shared goals and a mutual willingness to rethink compensation models that better support both quality and efficiency.

Beyond billing, the Task Force is also exploring recruitment, retention, and trial-readiness among younger attorneys—critical issues in an era of social inflation and mounting nuclear verdicts. If sustained, the momentum from these honest conversations could help redefine not just billing, but the future of insurance litigation management altogether.