Litigation Audits Vital to Insurers‘ Cost Control

Monday, March 20th, 2000 Litigation

The practice of insurance companies monitoring attorneys‘ fees and expenses is an excellent way to lower claim adjustment expenses, thereby controlling an important insurance cost driver, according to one insurance industry expert. Speaking in Arlington, VA last week before approximately 100 lawyers at Mealey‘s Attorney Fees Conference 2000, Kirk Hansen, director of claims for the Alliance of American Insurers, explained that competition to keep premiums down has forced insurers to pay more attention to cost control. "As part of their efforts to control expenditures, insurers have focused on defense costs because these payments constitute the largest single component of claim adjustment expenses," said Hansen.

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