The volume of insurance litigation cases is surging. In federal district courts alone, 17,654 cases were filed in 2023. This necessitates a focus on efficiency and strategic advantage for insurance professionals. Legal technology (legal tech) plays a pivotal role in empowering these professionals with innovative solutions to improve both efficiency and litigation outcomes.
Data-Driven Defense
Legal tech software is transforming how insurance defense approaches cases. Imagine lawyers wielding the power of AI and advanced analytics to sift through mountains of data, uncovering previously hidden patterns and trends. This data-driven approach allows them to predict case outcomes, formulate winning strategies, and make informed decisions based on hard facts, not hunches.
The Critical Imperative for Legal Tech
On the other hand, the most significant risk for insurance defense professionals isn’t necessarily a courtroom loss but falling behind in AI adoption. Insurance defense firms can potentially gain significant efficiency by automating routine tasks such as case management and document review with legal tech. This frees up attorney time to focus on the complexities of each case, develop strategic arguments, and build strong defenses. The resulting boost in both efficiency and productivity can provide a crucial competitive edge in today’s rapidly evolving legal landscape.
Streamlining the Financial Side
Legal tech encompasses advanced billing tools designed to expedite financial processes, which is another critical benefit. It allows flexible LEDES invoicing and budgeting, robust complex cost management, and effortless split billing. Consolidated invoices for clients with multiple cases and pre-billing for efficient invoice review and approval further streamlined the financial side of insurance litigation practice.
Learning from the Competition
Experts are sounding a clear alarm and encouraging insurance companies to adopt the plaintiffs’ bar’s approach and actively integrate legal tech tools into their workflows.
- The “Moneyball” Advantage: The plaintiffs’ bar is leveraging AI-powered case selection to choose cases with the highest chance of success strategically. This “Moneyball” approach allows them to maximize their resources and potentially secure more favorable settlements. If insurance companies fail to adopt similar data-driven strategies, they risk facing a disadvantage in case selection and overall litigation outcomes.
- Efficiency Gains: Legal tech offers a plethora of tools that automate repetitive tasks like document review, legal research, and case management. This allows insurance defense attorneys to focus on more strategic aspects of their cases, such as developing winning arguments and conducting client consultations. The plaintiffs’ bar’s embrace of these tools has likely led to significant efficiency gains, and insurance companies need to catch up to remain competitive.
- Improved Client Service: Legal tech can also enhance insurance companies’ client service, providing a system that allows for faster case updates, real-time communication with clients, and secure online portals for document sharing. These tools allow insurance firms to provide a more streamlined and efficient experience for their clients, an area where the plaintiffs’ bar may be excelling due to their tech adoption.
- Attracting and Retaining Talent: As it is not a secret in the industry, the legal landscape is facing a talent shortage, and young lawyers are increasingly drawn to firms that integrate technology. As time unfolds, technological advancements occur almost every minute, and insurance companies can demonstrate their commitment to innovation by implementing up-to-date legal tech features in the workplace.
Rolfes Henry: A Case Study in Legal Tech Success
Rolfes Henry, a leading civil litigation firm, proves how legal tech can positively impact firms’ operations. Under the leadership of office manager Rustil Mack, the firm transitioned from on-premise hosting to cloud-based legal tech solutions like CARET Legal.
Reflecting on the significant impact of the transition, Mack noted, “Without moving from paper to a cloud-based legal tech solution like CARET Legal, things would have been far more challenging, especially during the remote work period. This cloud-based system ensured business continuity by enabling our employees to seamlessly access and work on files from anywhere, even during those unprecedented times.”
The firm’s decision to renew its partnership with CARET Legal for another five years exemplifies legal tech’s capabilities in changing the operational framework from an outdated to a more efficient, progressive legal entity.
The Future of Insurance Litigation
Legal tech is undeniably one of the strongest forces in the insurance defense litigation industry, which is sweeping the entire legal landscape by storm. With the adoption of AI and advanced software solutions, insurance professionals can gain a significant edge through data-driven decisions, streamlined processes, and strategic case selection—the hallmarks of success in the new era of insurance litigation.
