AI Expert Systems for Demand Letters

Settlement Intelligence's AI Expert System for Demand Letters

Settlement Intelligence is an AI company providing AI demand letters and AI medical chronologies for personal injury cases such as auto accident claims and premises liability claims.

Settlement Intelligence presently offers an AI "expert system" for law firms wanting to leverage our 20+ years of research and expertise in insurance claim software and plaintiff personal injury practice to write demand letters optimized to obtain maximum settlement offers.

"Expert systems" AI is different than the generative AI such as ChatGPT, Claude AI, Perplexity or Google Gemini that we often hear about in the news.  For many plaintiff lawyers that have used generative AI for demand letters, the demand letters rarely capture and report the case facts of value to insurance AI expert system programs. Presently, generative AI is primarily creating medical timeline style demand letters that have long been known to disregarded by insurance adjusters.

By contrast, the present Settlement Intelligence demand letter platform allows law firms full control over the claim information entered, with our AI guiding lawyers and legal staff through the claim factors of value to each insurance company.  In interacting directly with our AI Expert System it trains lawyers, paralegals and staff on the factors of value in a claim and can identify when you don't have something of importance to the claim value such as a permanent impairment, Duties Under Duress or Loss of Enjoyment of Life supported in the client's records. 

Once you've reporting the factors of value to insurance companies, our AI optimizes the demand letter in a format to obtain the highest offers from your chosen insurer. 

Partially generative AI systems is an "easy" way to practice law (you and your staff aren't writing the demand letter), but not nearly as important as the result of the work - the client's settlement offer. What good is an AI demand letter if it doesn't do the job you were hired to do?  Using Settlement Intelligence you have a much higher likelihood of obtaining a higher value for your client's settlement offer, and as a result much less likely to be pushed into litigation.

What is an AI Expert System?

In Artificial Intelligence, an expert system is a computer system emulating the decision-making ability of a human expert.  This is the type of AI being used by insurance companies in their insurance claim software used to set the settlement offers.  It is also the type of AI being used in the present Settlement Intelligence demand letter application.

History of AI in insurance claim software

It is important to note that presently auto insurers and premises liability insurers are not evaluating bodily injury claims using full generative AI.  Our research suggests that all insurers continue to use AI expert systems that have been used in the United States since the early 1990s.  Our founders have done extensive research on these systems over the past 24 years. 

The following are the leading AI insurance claim software systems for evaluating bodily injury claims:

Colossus

Colossus was one of the first AI systems. Colossus was created in the mid-1980s in Australia for a workers compensation insurer.  In 1992 it was brought to the US and by 1995 it was implemented at Allstate as part of CCPR and its use exploded throughout the industry in response to Allstate's record profits.

Colossus was an "expert system" a system designed to seek information from the user (usually an insurance adjuster) that guided them through the program based upon the way a team of medical, legal and insurance experts would evaluate a case.  This all owed insurers to train adjusters to evaluate claims in a consistent way.  Once all of the data on a claim is entered, Colossus generates a settlement offer to the adjuster.  As discussed in Aaron DeShaw's book on Colossus, insurers then require their adjusters to settle claims within the range of settlement offer values provided by Colossus.  At one point in time Colossus was used on 60% of the auto claims in the United States, and continues to be used by insurers nationally

Liability Navigator

According to DeShaw, in 1996 the same team of programmers that built Colossus came back and created a new system for a competing company.  This product went by a number of names during development but eventually was named Claim Outcome Advisor or "COA." This program was owned by ISO Claim Services for a number of years, until ISO was acquired by Verisk Analytics Inc.  Claim Outcome Advisor was renamed Liability Navigator, and is often referred to as "LNav" by insurance adjusters.  Again, Liability Navigator is an AI expert system that guides adjusters through a series of questions, providing a work flow for data entry that moves adjusters through a series of questions as determined by a team of doctors, lawyers, insurance experts and computer programmers.  Claim Outcome Advisor / Liability Navigator has been widely used in the United States and even more widely adopted in European countries for the evaluation of auto and premises cases. 

ClaimIQ

Shortly after this a team of technology experts (primarily from Oracle) and management (primaly from McKinsey & Co.) created a platform called Claim IQ, with one of its products called InjuryIQ being a competitor to Colossus and Claim Outcome Advisor.  This company was later acquired by insurance software company Mitchell International and renamed ClaimIQ.   Similar to Colossus and the program now known as Liability Navigator, ClaimIQ is an expert system that guides insurance adjusters through a series of questions created by insurance claim consultants and technology experts.  ClaimIQ was a minor player for years, but is now widely used by some of the largest auto insurance companies in the United States. It can be bundled with DecisionPoint, the very popular economic damage evaluation service also owned by Mitchell International / Enlyte.

Guidewire

Guidewire is a later system created by one of the programmers of Colossus and Liability Navigator.  Guidewire is used by a number of insurers, but has never reached the level of use of Colossus, Liability Navigator and ClaimIQ.

Each of these bodily injury assessment programs are Expert Systems, where users are guided through questions that can expand or contract the number of questions in a claim based upon the user's entry.  

Demand Letter AI Expert System

For this reason, Settlement Intelligence's first AI system is also an AI expert system.  We've taken over 20 years of research and expertise on insurance claim software, medicine and personal injury law, and created a system for plaintiff law firms that asks the same questions as insurance AI systems to reverse engineer their claim process.  Based upon the insurer you choose, Settlement Intelligence creates a demand letter that is optimized for the insurer.

It might not be as easy as sending your records away and getting a demand letter back from a company a few weeks later that doesn't include most of the information of value to your case.  Instead, Settlement Intelligence allows you direct access to an AI Expert System platform that focuses on what matters - capturing the data that will drive higher settlement offers by feeding the insurance software the information it needs to provide your clients a value based upon all data of value to their claim.

License Settlement Intelligence today to create a high quality standard at your law firm that will result in higher settlement offers.

Author

This blog was written by lawyer Aaron DeShaw, author of the only legal treatise on insurance claim software, nationally renowned expert on personal injury demand letters, and founder of Trial Guides.