Defending lawsuits and managing trials is a major focus area and expense category for insurers—whether they are defending insureds against liability claims or defending themselves in coverage and bad-faith actions. There are many reasons why an involved party may file a lawsuit: impasse during negotiations, lawsuit at first notice of claim, inefficient claim handling, allegations of bad faith, etc. Based on our experience and industry financial data, we find that anywhere from 3-8 percent of direct written premiums are spent on managing litigation. The complexity of issues involved with litigation varies across lines of business. As the underlying risk becomes more complex, we find that the claims in suit percentage increases exponentially. By Amit Sharma and Upendra Belhe

After playing catch-up on innovation, insurers are now embracing artificial intelligence to build new standards in customer experience and business performance.

Ecosystems provide a win-win opportunity for incumbent insurance carriers, InsurTechs, and service providers by enabling them to operate in a coordinated fashion and devise competitive insurance offerings by opening new avenues. By Rahul Nawab & Upendra Belhe

Litigated claims are a key driver of increasing loss and expense ratios for property/casualty insurance carriers. Data-driven approaches—in particular, suit avoidance techniques and proactive de-escalation practices—can help insurers reduce litigation rates. By Amit Sharma & Upendra Belhe

Expensive quick fixes are helping companies endure COVID-19 but they are not sustainable over a prolonged period of heightened volatility. By Rohit Kapoor

The U.S. P&C industry has significantly lagged behind other U.S. and global industries in reducing unit costs over the last 15 years, and spending on managing claims litigation or contingent liabilities is a major reason. Most large P&C carriers spend 5% to 8% of gross written premium under various categories like external counsel, expert fees and internal attorney costs. By Amit Sharma & Upendra Belhe

Whole swathes of insurers’ business processes – particularly those that rely on the age-old challenge of manually managing mountains of unstructured data – are ripe for reimagining. By Mohit Manchanda, Roopak Chadha & Rohan Regis

To survive and thrive in uncertainty, to shore up organisational resilience and remain innovative, insurance firms must embrace diversity and meaningfully embed it in their culture and operating model By Raghav Jaggi, Mohit Manchanda & Prakhar Agrawal

Financial institutions must take action to better identify and investigate fraud, as well as thwart future attempts by combining artificial intelligence (AI), machine learning, and business judgment with a thorough forensic investigation of fraudster motives and methods By Varun Sood