Will proactive and responsive panel management ever become reality for purchasers of bulk legal services?
Purchasers of Legal Services and in particular bulk purchasers, such as insurers, will spend considerable time in the selection process for their legal panel to assure themselves of best price and service delivery controlled through pre agreed performance indicators managed through service level agreements.
Often however, the reality of policing and enforcing key performance indicators becomes an impossible or cumbersome task that is resource heavy with data that is flawed or slow to arrive.
The result of this tends to be that poor performance takes time to notice and Insurers are denied the ability to adjust the flow of new instructions to ensure that firms receive an appropriate number of instructions based on their performance.
It is in neither the law firm or the insurers interest to continue to send work to a firm that is struggling to meet KPI’s and slowing down or temporarily stopping work is in fact the best solution for all.
Due to the way in which panels are managed it is unlikely that a law firm would approach the insurer to advise of service issues and make a request to stem the flow of new instructions. Equally it is unlikely that an insurer will have the information upon which to base such a decision and work will continue to arrive into the law firms which could cause longer term issues in the relationship.
A law firm is likely to struggle through a difficult period for fear of losing their panel status. Hopefully the issue will be short term and overcome quickly but continued non-performance will ultimately lead to cessation of panel membership.
Encouraging a collaborative approach to working and sharing more openly performance management information should be embraced by both insurers and their panel law firms. Revealing how a panel is performing and where issues may be arising will enable both parties to take action to ensure the final service delivery meets expectation.
A law firm, providing an insurer with direct access to information contained in their chosen case management system will provide the visibility and transparency that both insurers and their law firms should want.
As law firms work on their systems in real time, data provided will also be in real time and therefore, the insurers will be able to assess and respond to performance both in terms of rewarding those firms who are performing and working closer with the firms who are struggling.
A Way Forward...
LHQ provides insurance claims departments with transparency of legal costs and case actions. By extracting real time data from the time recording and case management systems of the insurer’s panel law firms, LHQ will display and analyse both live and historic data through easy to use reporting from the inbuilt bespoke dashboard reporting solution.
By evaluating this data insurers will have never before seen information enabling a true and detailed understanding of the work being performed. This will help an awareness and improvement in service which will in turn drive down legal costs and case life cycles. The combined effect of which will reduce claims costs.
- LHQ can provide real time immediate visibility on all litigation costs being incurred. This data can be used to both scrutinise the detail and to extract key performance indicators and exception reporting.
- Law firm inactivity, which leads to increased lifecycles and costs, can be seen and challenged.
- Claims handlers can start to be proactive rather than reactive making informed, smart and proactive decisions.
- The data provided will allow standards and terms to be properly adjudicated against the relevant service level agreement.
- Each monthly invoice received from the law firm can be immediately judged against. Departures from law firms estimates can be immediately addressed and resolved.
- Minimal or no IT time as LHQ uses data feeds from the law firms’ system into a cloud-based web platform accessed through protected and secure use profiles.
Medium and Long-Term Benefits
- True and accurate scorecards can be created with detailed information ensuring the most productive and efficient firms receive the work they are good at.
- By analysing claimant firms’ behaviour insurer panel law firms will have information to assist negotiations and reduce settlement times.
- Average case lifecycles will be reduced. By making informed decisions the most efficient and productive firms should have the work they are best at. With a complete understanding of the analytics and typical length of a case across the panel for different types of claim, these law firms can then know whether matters should be litigated at all, the optimum time for settlement and look to shut down cases sooner.
- Litigation costs can be controlled.
- Target reduction in life cycles should be between 1-3 months.
- Taking the NHS as an example, where data is readily available, the savings by using LHQ is estimated to be between £54m-£163m per year; legal cost savings across the insurance sector would be very considerable.
- Proactive staff.
- Alignment of law firm and insurer interests for the best possible outcomes.
- Minimal integration requirements for the law firms with a limited amount of IT resources required. No IT resources required for the insurers who simply login to a website.
- Founder is an eminent QC (Edwin Glasgow CBE), Chair (Ken Moss) has 30 years as an executive in the software industry, Sales Director (David Green) was Claims Director of Churchill Insurance & Large PI Company and Product Director (Arabella Bown) ex commercial lawyer.
- Solution developed exclusively for the insurance and corporate/legal market and unlike any other provider, LHQ has specialist insurance and litigation knowledge ensuring the solution has been created with the specific requirements of the insurance sector in mind. The insurance sector is therefore LHQ’s initial target.
- All data is stored at Amazon Web Services hosted in London. All data is encrypted when transferred and at rest using an industry standard Transmission Layer Security and in accordance with our Data Encryption Policy. All employees are security checked. Application features include auto logout, access control and IP restrictions.
- LHQ is compliant with the GDPR. We have a Data Protection Policy in place together with an LHQ Information Policy and an Information Security and Acceptable Use of ICT Policy. All are available on request.
If you would like more information on LHQ, then contact us on 0203 637 1950 or make an online enquiry here.