In the first article of this series 5 Fatal Flaws in Litigation Management, we examined the persistent “us vs. them” mentality that often separates insurance carriers from legal counsel. This division undermines collaboration, increases costs, and delays claim resolutions. But what if the solution lies in redefining the dynamic—not as adversaries but as collaborative allies striving for shared success? It’s time to rethink litigation management and embrace a partnership approach.
Charting a New Course: Building Bridges in Litigation Management
Transitioning from an adversarial stance to a collaborative partnership requires purposeful changes in culture, communication, and strategy. Consider this industry guideline as a starting point:
“Adjusters should maintain control of the claim and actively manage the claim with the goal of successfully concluding it.”
This principle underscores the importance of adjusters remaining engaged while empowering counsel to execute strategies aligned with the carrier’s objectives. Let’s explore actionable strategies to foster this partnership.
1. Cultivating a Culture of Collaboration
At the heart of a strong carrier-counsel relationship is mutual respect and shared objectives. Here’s how carriers can foster this culture:
- Set Shared Goals: Collaboratively define case outcomes, such as settlement timelines or trial objectives. Aligning from the outset creates a unified direction.
- Acknowledge Expertise: Recognize and integrate counsel’s specialized knowledge of legal intricacies and jurisdictional nuances into claims strategy.
2. Clear Communication: The Key to Alignment
Consistent, transparent communication bridges gaps and ensures alignment. Many industry guidelines recommend regular updates to keep all parties on track:
“Attorneys should provide concise case updates, strategy outlines, and key decision points requiring adjuster input.”
Here’s how to take communication to the next level:
- Standardize Communication Protocols: Define expectations around response times, reporting formats, and escalation points.
- Leverage Technology: Use secure platforms to share real-time updates, analytics, and case documents.
3. Empower Counsel While Maintaining Oversight
Micromanaging legal teams often leads to inefficiencies. Instead, empower counsel with clear boundaries:
- Conditional Autonomy: Allow counsel to independently settle claims within pre-defined thresholds.
- Actionable Budgets: Work with attorneys to create detailed budgets aligned with case goals and monitor them in real-time. Budgeting is a great way to learn more about the case and have an open discussion about strategies.
4. Align Incentives to Drive Outcomes
Fee structures and performance metrics play a pivotal role in fostering collaboration. Consider these strategies:
- Alternative Fee Arrangements (AFAs): Explore options like flat fees or success-based bonuses to reward efficiency and results.
- Performance Metrics: Regularly evaluate counsel based on case duration, cost-effectiveness, and client satisfaction.
5. Adopt Decision Point Frameworks for Strategic Clarity
Decision frameworks like Decision+™ integrate legal counsel into a structured process, streamlining decision-making at critical junctures. Such frameworks ensure alignment on choices like settling, litigating, or pursuing further investigation.
“The decision-making process at each juncture demands a careful evaluation of the evidence, potential outcomes, and broader implications.”
Why Collaboration is Worth It
Reframing counsel as strategic partners unlocks measurable benefits:
- Cost Savings: Reduced inefficiencies and legal expenses.
- Faster Resolutions: Eliminated delays and accelerated case progression.
- Higher Client Satisfaction: Streamlined, effective claims handling benefits insureds directly.
The question isn’t whether collaboration can help but how we can implement it effectively.
Join the Conversation
We’ve outlined strategies to foster collaboration between carriers and legal counsel, but every organization’s challenges and successes are unique. Now, it’s your turn:
- What’s your biggest challenge in fostering collaboration between carriers and counsel?
- Have you implemented any of these strategies, and what results have you seen?
- Are there other approaches that have worked well for your organization?
In the final article of this series, we’ll dive into specific tools and frameworks—like advanced analytics and technology platforms—that support collaborative litigation management. Until then, share your insights in the comments below. Let’s learn from each other and drive meaningful change in litigation management.