In the new global marketplace, companies need to manage theirefforts, quite literally, on a worldwide scale. AIG WorldSourceserves U.S.-based companies with international operations, as wellas foreign companies doing business in the United States.Accordingly, a wide range of claims and related legal issues arisefrom the four corners of the world.

|

WorldSource, a division of the property-casualty insurancesubsidiaries of American International Group, has sought out thebest technologies to help in managing its claim andclaim-litigation processes.

|

Many in the insurance industry have looked to legal electronicbilling and bill review as candidates for technological automation.Using the application service provider-version of AllegientSystem's Expense and Performance Management Suite has createdsignificant benefits for AIG, especially given the volume andcomplexity of litigation. The new system has translated,conservatively, into an estimated five percent reduction in legalfees. Just as valuable, the knowledge garnered, has allowed AIG tomonitor its claim litigation management on a continual basis. Atthe end of the day, everyone benefits, including the insured.

|

Reviewing Legal Work

|

Initially, the company evaluated three electronic-billing andbill-review alternatives. In addition to offering more than theother two combined, Allegient's system was selected because of thecompany's reputation and experience.

|

The implementation began with a test phase involving five lawfirms. AIG worked closely with the test firms to obtain theirfeedback, resulting in subtle guideline changes along the way.After 60 days of testing, the system was launched in the New Yorkoffice. Since then, its use has mushroomed and, now, it is inproduction in the San Francisco, Dallas, and, most recently, PuertoRico facilities.

|

Because the system is offered through ASP-delivery, AIG staff,outside counsel, and insureds have access 24 hours a day fromanywhere in the world. Effective and economically sound litigationmanagement is achieved by close teamwork between AIG WorldSourceclaim examiners and defense counsel. The system serves as a toolfor close communication, joint decision making, and implementationof the most appropriate courses of action.

|

Retained counsel is required to submit legal billselectronically, using the Uniform Task-Based Management Systembudgeting and billing system. The fees are coded in the LegalElectronic Data Exchange Standard format to ensure uniformity.

|

Once the system is in receipt of an electronic statement, anautomatic review process ensures that the bill conforms to AIGWorldSource's guidelines. The law firm is notified of anydiscrepancies and afforded the opportunity to modify the bill forcompliance.

|

The system then routes the bill automatically to the appropriateclaim examiner. Using the software, the examiner is able to focuson and analyze non-compliant billing activities and the billsthemselves. With the automatic review of every incoming legal bill,the system is able to catch all coding, math, or rate errors beforebills are submitted to examiners. Once the review process has beencompleted, the system automatically notifies the law firm that theinvoice has been approved.

|

The system also allows AIG to analyze raw billing data. Thecompany can monitor day-to-day litigation management activity andidentify trends, all in an effort to evaluate the performance ofits law firms and examiners. Using the data for reporting,monitoring, and training has assisted AIG WorldSource in improvingthe performance of its examiners and outside counsel.

|

William Wymes is the office manager for the New York Branch ofAIG WorldSource. He can be reached at [email protected].

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.