Insurance claims departments and outside defense firms are working to improve how they manage litigation, measure results, and control legal costs. CLM’s Litigation Management Task Force has focused on four areas: counsel value, cost management, professional development, and talent recruitment and retention. Its first report details efforts to give carriers and defense firms clearer expectations for working together on litigated claims.
A key issue is how claims organizations measure defense counsel performance. A successful outcome may be a defense verdict, but it could also be an early resolution, a cost-effective settlement, reduced cycle time, or another result that meets the carrier’s objectives. The task force is exploring performance measures tied to communication, evaluation accuracy, case strategy, and outcomes, along with alternatives to traditional hourly billing.
The report also addresses emerging litigation challenges, including artificial intelligence, third-party litigation funding, and nuclear verdicts. Working groups are examining how TPLF can influence case strategy, how AI tools can be used within legal and ethical boundaries, and how claims professionals and attorneys can identify cases with elevated verdict potential. CLM has also expanded training on coverage, claims investigation, fraud, reserving, negotiations, and litigation management.
For adjusters, the work points toward closer coordination with defense counsel throughout the life of a claim. Clearer performance expectations, better litigation guidelines, stronger foundational training, and shared knowledge of claims and legal processes could help claims professionals evaluate cases, manage legal spending, and make more informed litigation decisions.
