A new Consero Group survey reveals that a vast majority—80%–of chief litigation officers in the financial services and insurance industries say they are not delegating more of the company’s legal work to outside counsel than they did 12 months ago.
As part of a Financial Services & Insurance Litigation Data Survey, additional results reveal that 36% of participants say they have increased their use of alternative fee arrangements over the last year.
“As a majority of chief litigation officers in the financial services and insurance industries continue to preserve work in house, and more than a third have increased their use of alternative fee arrangements, it appears these executives continue to be aggressively focused on the bottom line,” said founder and CEO of Consero, Paul Mandell.
The number of cases filed against companies in these sectors appears to be increasing. Nearly a third of respondents reported an increased volume of cases filed against their company in the past year, and 56% report that the volume of cases for their company has not changed. Only 14% reported a decrease in the number of cases filed.
“The increasing number of legal battles faced by companies in the financial services and insurance industries demonstrates the critical role of the chief litigation officer, as well as increasing volume of support necessary from senior management,” Mandell said.
While lawsuits continue to increase, executives appear to be aware of the risk. Seventy percent of respondents said their executives are adequately educated on risk, according to the survey, and 80% of respondents said that they have sufficient access to resources required to manage their departments effectively.
The Financial Services & Insurance Litigation Data Survey was developed through connection with an invitation-only event hosted by Consero Group this past May for the leaders of litigation departments in Fortune 1000 companies. Results are based on the responses of 44 representatives.