Why Waiting is Costing You Millions: The Financial Risk of Ignoring Inefficiencies in Claims Litigation

Sep 9

By Rebecca Side

In the high-stakes world of insurance claims litigation, one of the most costly decisions a carrier can make is to do nothing. For many organizations, the current inefficiencies, outdated processes, and fragmented data management systems seem tolerable—at least on the surface. But underneath, these inefficiencies are silently draining resources, delaying case resolutions, and increasing exposure to devastating nuclear verdicts.

Inaction isn’t just costing you—it’s putting your business at significant risk. Let’s dive into the hidden costs of doing nothing and why addressing them now is critical for the financial health and future competitiveness of your organization.

The Hidden Costs of Maintaining the Status Quo

1. Operational Inefficiencies and Fragmented Processes

The claims litigation process is notoriously complex, with multiple stakeholders, systems, and touchpoints involved. When these processes remain fragmented, inefficiencies pile up. Adjusters struggle to keep track of crucial information buried in emails or siloed systems, while attorneys operate in reactive modes, responding to issues rather than proactively driving case strategies.

This “business-as-usual” approach results in lost productivity, missed deadlines, and duplicated efforts—all of which translate to wasted dollars. The cost of this inefficiency compounds over time, leading to skyrocketing loss adjustment expenses (LAE) that erode profitability.

2. Delayed Settlements and Escalating Litigation Costs

Time is money in claims litigation. The longer a case drags on, the higher the associated costs. Legal fees mount, expert witness expenses accrue, and settlement negotiations become more drawn out.

But the real danger lies in delayed settlements that expose carriers to nuclear verdicts. These catastrophic jury awards, driven by social inflation and increasingly aggressive plaintiff strategies, have the potential to devastate financial reserves and tarnish reputations. By not addressing inefficiencies now, you are leaving your organization exposed to unpredictable risks that could cost millions more down the line.

3. Missed Opportunities for Data-Driven Decision-Making

In today’s data-rich environment, the failure to leverage available information is an expensive missed opportunity. Most carriers are sitting on vast amounts of litigation data that remain untapped and underutilized. This is data that, if structured and analyzed effectively, could provide actionable insights into litigation trends, early settlement opportunities, and areas for process improvement.

By doing nothing, you are not only missing out on valuable opportunities to reduce costs and improve outcomes but also allowing inefficiencies to persist unchecked.

The ROI of Acting Now

The good news? Addressing these inefficiencies and embracing modern claims litigation technology isn’t just the right move—it’s a profitable one. At ClaimDeck, we’ve seen carriers achieve substantial savings and process improvements by streamlining their litigation management practices. With a platform that centralizes information, automates routine tasks, and provides real-time data insights, carriers can drive down litigation costs, speed up case cycle times, and protect against costly verdicts.

How much could you be saving? Use our ROI calculator to find out. With just a few data points, you’ll be able to see the immediate impact ClaimDeck could have on your bottom line.

ROI CALCULATOR FOR CARRIERS

The Cost of Doing Nothing

As the industry becomes more competitive and the pressure to improve operational efficiency mounts, the carriers that hesitate to modernize will find themselves at a significant disadvantage. The financial and reputational risks associated with sticking to outdated methods are simply too high.

So, ask yourself: Can you afford to wait any longer? How much more are you willing to lose before taking action?

If not you…who? If not now…when?

Don’t let inaction be the most expensive decision you make this year. Contact us today to learn how ClaimDeck can help transform your claims litigation process—and protect your bottom line.