Navigating Complex Claims: Challenges and Solutions, The Quaker Way

The commercial auto insurance industry is grappling with numerous challenges that have consistently strained its performance. Rising claims costs, the threat of more cases going to trial, and the pervasive issue of social inflation are just a few of the hurdles faced by claims handlers and managers. To steer through these conditions, it's essential to address key challenges head-on and explore strategies to confront them effectively.

Underwriting commercial auto insurance has always been a tough business. Ask any veteran in the field, and they’ll tell you the industry’s adverse factors have created a challenging environment. This makes it crucial for commercial auto insurers to adopt sophisticated risk management strategies and innovative claims management approaches to stay profitable. Unfortunately, the landscape shows no signs of improvement; if anything, it’s getting worse. Contributing to this grim outlook are driver shortages, regulatory pressures, and plaintiff lawyers relentlessly targeting any aspect of trucking company operations they believe will strengthen their case.

Many argue that it’s not about greed or securing the largest verdict, but about “making plaintiffs whole and providing fair compensation.” Yet, it's hard to ignore the other motivations driving aggressive litigation. All too often, we see cases where the desire to punish an insured company seems to overshadow the pursuit of fairness.

So, what can claims handlers and managers do to mitigate these challenges and prevent them in the future? First, a reality check: some plaintiffs' lawyers are simply more skilled than the defense counsel assigned to the case. In such situations, it's vital to either change the defense team or bring in a highly effective trial lawyer with a proven track record against the opposing counsel.

While this strategy may seem obvious to seasoned litigators, Quaker Analytics’ historical data reveals that in cases where exposures were underestimated, ineffective defense strategies often led to outcomes veering into the “dangerous verdict” territory. Claims handlers frequently maintained the status quo with their legal team until it was too late—often just before trial. Confronting the effectiveness of one’s choice of counsel, especially when there’s a longstanding relationship, can be uncomfortable and time-consuming. But this can be avoided by adopting a more data-driven approach.

Quaker Analytics has developed models and tools that identify significant exposures early in the claim-handling process, enabling claims handlers and managers to take decisive steps to strengthen their cases. Quaker's plaintiff attorney scorecard, for example, provides detailed data on the opposing lawyer, highlighting which defense panels have achieved the best results against that attorney in similar cases. It also uncovers unique insights into the plaintiff's counsel, such as their filing tendencies, negotiation strategies, and trial effectiveness.

Moreover, Quaker Analytics has helped commercial auto insurers resolve more cases before they reach trial, addressing one of the most significant challenges facing the industry today. Some companies have discovered, through Quaker’s data analysis, that the ideal lawyer for their case wasn’t even located in the same state as their panel counsel. This kind of insight was previously unknown to claims organizations.

The key lies in identifying which data elements are most meaningful and starting to capture them. If your data isn't already providing these insights, it’s time to begin. Working with analytics firms like Quaker offers the added benefit of accessing industry-wide data, which can fill in the gaps even when your internal data is incomplete. While it's difficult to prevail in cases where you’re outmaneuvered, out-lawyered, and at a disadvantage geographically, data analysis can significantly improve your chances.

Take the first step towards strengthening your claims strategy—reach out to us today.

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Mitigating Risks in Commercial Fleets: Insights From a Claims Perspective, Part I

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The Impact of Quaker Analytics on the Reserving Process: A Game Changer for Actuaries