This article was written with the assistance of AI and edited by Angela Sabarese.
In a recent CLM webinar, titled, “Early Claims Resolution: Important Considerations for Claims, Insureds, and Counsel,” moderator R.J. Williams, a member at McAngus Goudelock & Courie, LLC (MGC); Melissa Blatt, assistant vice president of claim litigation at Encova Insurance; and Cade Williams, assistant vice president of risk management for Marriott Vacations Worldwide, explored the critical "why, when, and how" of closing insurance claims as quickly as possible.
The Carrier’s Perspective
Blatt articulated the carrier’s motivation, stating, “From a carrier perspective, the mantra is the only good claim is a closed claim. You don't know the value of a claim until it's closed.” She highlighted how long-tail claims, particularly in workers’ compensation with lifetime medical benefits, erode profitability and are difficult to estimate.
The Insured’s Perspective
From the large insured’s viewpoint, Cade Williams explained that early resolution shortens volatile exposure lines, leading to healthier financials for their captive insurance company and preventing claims from becoming litigated. He emphasized that the focus should be on partnership, noting, “We should be adding value or providing you with unique ways to reach a settlement rather than being a hurdle.”
Strategy
The discussion on strategy centered on proactive and communication-driven tactics. The panel advocated for making the first offer to avoid the high "anchoring" numbers often set by plaintiffs’ demands. Cade Williams shared his company’s success with empowering adjusters to make first-call resolutions on liability claims, using tools like DocuSign to finalize agreements on the spot. The panelists emphasized the importance of the employer maintaining contact with an injured worker to build trust, a sentiment Williams referred to as providing “TLC.”
Ultimately, the roundtable concluded that a proactive, collaborative, and humane approach is key. By fostering communication, leveraging modern tools, and focusing on fair, early offers, all parties can achieve faster, more efficient resolutions.
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