In today’s demanding and competitive insurance marketplace, one of the skills that can separate the high-performing insurance company from its competitors is litigation management. This skill is vital to delivering the value-added proposition that a top-notch claim organization should deliver to its clients. This article will discuss the three components required to deliver world-class litigation management.

Selecting Effective Counsel

This is one of the most challenging areas of good litigation management and one that is driven less by objective measurement and more by effective marketing of law firms. It is very difficult — but not impossible — to measure a counsel’s effectiveness. This challenge is of such importance that those who get it right have a tremendous competitive advantage.

The fact is that while counsel can be measured by objective means, few companies do so in any meaningful way. As a result, the selection of counsel is based on the principles of risk aversion and career protection. For the claim professional, this means the main driver for counsel selection is the desire to avoid being second-guessed by a supervisor should case’s outcome end negatively. This driver inevitably leads to a claim professional selecting a “name-brand” firm and, if the case is large enough, the name-brand partner from the name-brand firm. Thus, the claim professional is protected from second-guessing if a bad outcome occurs, thus minimizing the risk to his career.

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