Client Relations, Expectations and Confidentiality Chris Carucci Matt Morrison © CLM Litigation...
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Transcript of Client Relations, Expectations and Confidentiality Chris Carucci Matt Morrison © CLM Litigation...
Client Relations, Expectations and Confidentiality
Chris CarucciMatt Morrison
© CLM Litigation Management Institute 2013. All rights reserved. The course material presented herein does not represent the views or opinions of any of the individual faculty members or instructors or of any of the companies or entities with which they may be employed or affiliated. Nothing in the course materials presented should be construed as legal or professional advice or the rendering of a legal or professional opinion on any specific factual situation. Always seek appropriate legal and professional business advice in the context of specific cases.
Goals of the Course Understand the roles and responsibilities that
each member of the team (counsel, insured, carrier) plays in the claim litigation process
Know how developing effective communication strategies favorably affects results
Appreciate resolution strategy development and its import
Goals of the Course
Understand the impact of litigation management
Understand why costs including expenses and case results matter
Agenda
Client Relations Communication Case Development and Strategy Litigation Management Impact of Costs and Case Results
Client Relations
What do we mean by “Client Relations”?
Client Relations
What are some ways to encourage positive client relations?
What are some examples of creating negative client relations?
Client Relations
Client expectations Critical to discover what the client’s definition
of success is Critical to understand the client’s definition of
success Manage the client’s expectations
Client RelationsImportance of strong relationship between defense counsel and the claim representative Key component in achieving a good result on
the claim Increases the potential for future business for
defense counsel from the claims examiner/company
Increases the potential for future business for defense counsel from other sources
Client Relations
Who comprises the “team” in a litigated claim and what are their roles and responsibilities? Defense counsel Insured Carrier
Client Relations
What is the tri-partite relationship? What ethical issues does this relationship
present? What is the duty of confidentiality owed by
defense counsel to the insured?
Communication
Timely Frequent Comprehensive (anticipate and understand
what information is important to the carrier)
Communication
Methods of communication Email Phone Reports
Communication
What does the insurance company do with the information you provide them with during the pendency of the claim/litigation?
Communication Reports provided must conform to LitigationGuidelines in terms of content and timeliness.
Reporting timeframes and required content within guidelines are built around client’s internal SOPs and best practices for litigation management. For example, Initial Case Assessment is required from counsel within 45 days because all litigated claims must be conferenced internally within 60 days.
Communication It is the responsibility of a claim handler to
establish and maintain accurate reserves in a timely fashion.
New information must be provided in a timely fashion.
Information from counsel assists claim handler with reserving process.
Case Development and Strategy
“If you don’t know where you are going, you might wind up someplace else.”
— Yogi Berra
Case Development and Strategy
In the first 90 days of the case, develop a “roadmap” for the claim. Critical to the appropriate handling of the
matter Frequent communication with the carrier in
order to develop case strategy Agree with the claims representative on what
constitutes “success” for this claim
Case Development and Strategy
Information Gathering Obtain from the claims representative all
information they have relative to the claim Meet with the insured Identify external sources
Case Development and Strategy
What information does the claimsrepresentative want and expect to know
during the first 90 days of the case?
Case Development and Strategy
Expectation that defense counsel will continue to keep the claims representativeapprised of all significant developments.
What constitutes a “significant” development?
Case Development and StrategyMediation Mediation should not be agreed to without
the consent of the claims representative. A mediator should not be selected without
the consent of the claims representative. Do not commit to in-person attendance by
the claims representative without authority. Provide mediation brief to the claims
representative prior to exchanging with other parties.
Trial
Be sure to communicate trial date as soon as it is received. Communication should be in writing.
Ensure that pre-trial reports are timely. Ensure that pre-trial reports are prepared in
accordance with the carrier’s requirements.
Litigation Management
What is Litigation Management?
Litigation Management
The CLM defines litigation management as:“The implementation of comprehensive strategies in order to achieve favorable claim resolutions and efficiency in either the litigation process or pre-litigation dispute resolution. Effective litigation management will yield measurable data aimed toward providing fiscal predictability in the litigation process and which facilitates informed strategic decision-making for future litigation planning.”
Litigation Management
Essentials of Litigation ManagementCollaboration
Fully utilize the expertise of counsel and claim professional
Timely and Accurate Information “No Surprises”
Analysis and Advice Overall Litigation Strategy “Settle or Try” Evaluation
Litigation Management
Litigation Guidelines A framework for collaboration with counsel
designed to bring about the best possible defense for the insured in an efficient and effective manner.
Establish client expectations/service level agreement.
Outlines reporting and billing expectations.
Impact of Costs and Case ResultsLoss Cost TriangleUnallocated Loss Adjusting Expense (ULAE) — claim department overhead, IT costs, salaries, etc.
Allocated Loss Adjusting Expense (ALAE) — claim handling expenses allocated directly to a specific claim including, investigators, independent adjusters, attorneys, experts, etc.
Indemnity — loss payments including settlements and verdicts.
External Factors — legal environment, regulatory environment, economy, customers and stakeholders.
Impact of Costs and Case Results
ULAE
ALAE
Indemnity
Focus is on what we can control: ALAE & Indemnity (Total Loss Costs)
Legal Climate Regulatory Climate
Economy Customers
Shareholders
Impact of Costs and Case ResultsClaim Department performance is evaluated based upon total loss costs.Key Metrics
Cycle time Total expense per closed file Total indemnity per closed file Method of disposition
This underscores the importance of formulating a litigation plan at the outset.
Impact of Costs and Case Results Why is it important? Loss and expense payments factor into loss histories
of insureds Impact rates and renewals Impact actuarial analysis and projections Impact business strategies
Loss and expense ratios are key components of combined operating ratio (COR)
COR is a key indicator of profitability and a key component of return on equity (ROE)
Client Relations, Expectations and Confidentiality
Chris CarucciMatt Morrison