Insurers
Litigation risk assessment for insurers
A litigation risk assessment is the written reading of a claim or a book: outcome, duration and value, each as a band, each traceable to the record it was read from.
Who this is for
Chief claims officers, litigation managers and reinsurance and portfolio teams
Your job is to put a defensible number on litigated exposure, and to explain it to someone who was not in the room: a reserving committee, a reinsurer, a regulator. A number that cannot be traced to its source, or that changes when the same file is read twice, does not survive that conversation.
What an assessment contains
For each matter, the assessment states the likely outcome, the time to resolution and the value range, each as a calibrated band with the model version and the record date beside it. For a book, it adds the schedule of matters, the concentration by venue, case type and counterparty, and the matters whose reading changed since the last assessment.
Every figure carries a status. A figure read from a full record is stated as such. A figure that rests on stated inputs, or on a thin segment, is labelled with that, so the reader knows how much weight it will bear.
How it is produced from court records and private settlement data
The assessment starts from filed court records, which are linked to the parties, the judge and the venue on each matter. The matter is placed among comparable matters and read against their history. The same file read twice returns the same number, and a change in the number is always traceable to a change in the record.
Where a document is missing from the file, the reading does not move upward to compensate. Missing information widens the band or holds the figure, so withholding a document can never improve a result.
How a carrier uses it
Claims teams use the assessment to prioritise files for early resolution, to test reserve adequacy by venue and case type, and to document the basis for a reserve change. Portfolio and reinsurance teams use the book view to see where exposure concentrates and how it moved between assessments.
The market that asks for this is regulated outcomes intelligence for claims: measured outcome, duration and value for the matters an insurer is obliged to reserve and report.
What this number means
An assessment states a measured range for matters like the one read. It supports a reserve decision and the explanation of it. It does not replace the claims professional’s judgment on the facts of a file, and it is restated when a ruling or filing changes the record.
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Questions readers ask
What is a litigation risk assessment for an insurer?
A written reading of a claim or a book of claims that states likely outcome, time to resolution and value as bands, with the model version, the record date and a status on every figure. It is produced from filed court records and can be reproduced from the same file.
How is a litigation risk assessment produced?
Each matter is linked to its parties, judge and venue in the filed record, placed among comparable matters and read against their history. The same file read twice returns the same number, and any change in the number traces to a change in the record.
What happens when information is missing from a claim file?
The reading does not rise to compensate. A missing document widens the band or holds the figure, so withholding information can never improve a result.
Next step
Read your claims, venues and dockets from the record.
Tell the Intelligence desk what you hold. You receive a written report from the filed record, with every figure labelled.
Request an assessment