Litigation management, and all it entails, is perhaps the most crucial topic facing chief claims officers (CCOs). From defining what “litigation management” means today, to ensuring the right people are in place to execute an effective litigation management strategy, to maintaining and improving relationships between the key players within that strategy, there are many challenges facing CCOs as they look to piece the litigation management puzzle together in a way that can effectively meet today’s claims and litigation landscape.
This year, CLM’s Litigation Management Task Force—made up of some of the most motivated claims and litigation management professionals within the CLM community—has been hard at work tackling the big questions and developing innovative solutions to the most pressing challenges. During this year’s CLM CCO Summit in Baltimore, on Sept. 3 at the Hilton Baltimore Inner Harbor, representatives from the Task Force will provide an update on the topics that have been discussed, key issues that have come to light, and potential solutions that are being explored. The discussion will be led by Krista Glenn, executive vice president and CCO, Westfield Specialty; JD Keister, member and litigation practice area leader, McAngus, Goudelock & Courie, LLC; and Bob Kopka, founding partner, Kopka Pinkus Dolin.
The Role of the Task Force
The Task Force is engaged in both completed and ongoing work that has far-reaching implications, according to Glenn. “It supports carriers in evaluating key performance indicators (KPIs) as alternative measures of success beyond the traditional billable hour,” she explains. “It also highlights successful implementations of alternative fee arrangements (AFAs) by other carriers and offers a framework for strengthening collaboration between carriers and counsel.”
Kopka adds that “CCOs will want to know that [their] partnership with outside counsel is solid, and that the fee and audit structures align with the company goals of paying what it owes quickly and defending its insureds with an eye toward early resolution.”
Tackling Challenges
Recognizing that claims departments and insurance defense firms are facing unprecedented challenges, CLM organized the Task Force “to unite carriers and law firm leaders in a joint effort to articulate the challenges they…face and to offer solutions,” Kopka explains. To most effectively address them, the Task Force was divided into four subcommittees to focus on key topics and encourage as many voices as possible.
One of the top obstacles being addressed by the Task Force, notes Glenn, is the talent shortage faced by both carriers and defense counsel. “The Task Force’s Talent Recruitment Subcommittee is actively exploring innovative strategies to attract, develop, and retain top talent in the industry,” she explains. “As we address our own internal challenges—including the looming retirement cliff among experienced claim professionals—it is essential for carriers to recognize that the talent gap within defense firms also directly impacts our ability to serve insureds effectively. Strengthening our partnerships with panel firms to support and invest in the training of the next generation of trial lawyers is not just beneficial; it’s also imperative for the long-term success of our shared mission.”
Other issues the Task Force is tackling, adds Kopka, include rising defense costs, social inflation’s impact on verdicts and settlements, challenges related to evaluating exposure early, anchoring damages, and negotiating early favorable resolutions. “Out of monthly subcommittee meetings [grow] meaningful recommendations for change that promise to provide lower cost to carriers through focus on KPIs and higher returns, and better job satisfaction to outside counsel,” Kopka says. These recommendations are meant to “eliminate waste, reduce legal spend, obtain favorable settlements earlier, and obtain better outcomes at trial.” The Task Force also recommends the early adoption of AI and innovation as part of a litigation management strategy.
After identifying the core challenges faced in litigation management, The Task Force, according to Glenn, “is now beginning to develop thoughtful, actionable solutions. For instance, in response to the complexities introduced by the billable hour model, members are actively exploring alternative fee arrangements (AFAs), revised billing guidelines, and broader definitions of success that go beyond cost metrics. Additionally, the group is engaging in innovative conversations around training the next generation of defense attorneys. While we are still in the early stages of what promises to be a long and evolving journey, I am deeply encouraged by the dedication and commitment demonstrated by all involved.”
Session Goals
During the CCO Summit update, the panelists aim to make the audience “aware of a consensus that there are ‘pain points’ and ‘blind spots’ that have emerged in the relationships with outside counsel which are adversely affecting their ability to manage litigation,” says Kopka. “We will explain some of [these] and…identify specific recommendations for change, which emerged as consensus among the Task Force.” The speakers will also discuss possible responses to the specific challenges CCOs face and seek commitment to both keeping an open mind and helping the industry to address these challenges through action.
“Modestly, we propose to change the world,” concludes Kopka. “Our top priority is for the industry to recognize the need for change and to try something new. We hope that carriers will not be trapped in a broken model. If the carriers adopt new ways to evaluate and pay for legal services, the law firms will adapt.”
Join CLM and your CCO colleagues on Sept. 3 for this and several other sessions of utmost interest to your everyday business. For more details and to register for CLM’s CCO Summit, click here.