Increase Settlement Offers Using Settlement Intelligence Loss Reserves Letter

Increase Settlement Offers by Correctly Setting Loss Reserves

Settlement Intelligence is different from our "competitors" because we have significant experience in the field of personal injury law and demand letters.  Unlike founders from the defense bar, IT, legal funding or the investment banking industry, we provide real tools for practicing plaintiff lawyers. Our new loss reserves letter is one of those tools.

Insurance Regulations Require Adequate Loss Reserves

State insurance laws and state insurance commissioners require that insurers set aside appropriate loss reserves (often abbreviated simply as "reserves") to pay insurance claims when a loss occurs.  In fact, the primary purpose of all state insurance commissioners is to ensure that each licensed insurance company has sufficient reserves to pay their claims.

Insurers Won't Pay What They Don't Reserve

Based upon insurance claim data, more than 90% of all claims settle at $15,000 or less.  As a result, most large insurers will set their initial reserves at $2,500.  The adjusters assigned to these claims only have the authority to pay $2,500 on claims.  Unless you send information to ensure the claim reserves are set above $2,500 and an adjuster with sufficient authority is assigned to your case, your offer will not be above that reserve and authority amount.

In order to ensure that sufficient funds are available for settlement, lawyers need to inform the insurer of the facts of your case, and provide documents that support the settlement value you intend to seek when you write the demand letter.  Often when the reserves increase, the adjustor is also changed to one with sufficient authority to settle your case. But unless you provide the documents necessary to increase the reserves well in advance of the demand letter, you can't get a sufficient settlement offer on your case.  Settlement Intelligence customers who formerly worked for the defense recognize this as a "genius" product because if a claim payment exceeds the set reserves it can trigger a significant conflict between an insurer's actuaries and its claim department.  In reality, adjusters and claim supervisors don't exceed reserves on a case.  So, if you don't do what is necessary to help them set an expected claim value before your demand letter is sent, they will never offer what the case is worth.

Increase Settlement Offers by Planning Ahead

Our new "loss reserves letter" is a game-changer for plaintiff lawyers, paralegals, and law firm staff. It enables you to generate a strategically timed letter that sets or re-sets reserves for cases. Settlement Intelligence instructs you how to best use the reserves letter inside the licensing platform.

A video on reserves will be posted soon to the Settlement Intelligence Learning Center for your staff to learn more about the importance of setting reserves and how to go about it most effectively to maximize settlement offers.

License Settlement Intelligence today to get access to our proprietary Loss Reserves Letter.