Metrics & Analytics
These are the metrics and analytics we discuss with clients for the purpose of service alignment.
Metrics
- Average case life
- Average legal spend per file
- Billed to budget ratio
- Budget accuracy (quarterly and total budget) and history of changes
- Evaluation accuracy and history of changes
- Reserving accuracy
- Case complexity
- Net premium amount written
- Number of touchpoints: Number of times Claims Professional interacted with the
- Attorney to move the case forward
- Satisfaction score with defense counsel
- Itemized legal expense
- Resolution type
Return on Investment (ROI)
- Improvement of (ROI = First Reserve – Total Fees and Expenses – Indemnity)
- Improvement of Net Loss Ratio (With or Without LAE)
- Improvement of Net Expense Ratio
- Improvement of Net Combined Ratio (Sum of Incurred Losses and Expense Ratio)
- Reduction of Loss Adjustment Expenses (LAE) – Not Including Expenses
- Improvement of Net Combined Ratio against Ratio based on First Reserve
- Desired Customer Renewal Rates Achieved or Improved
- Improvement of Reserve Accuracy
- Achievement of Subrogation Recovery
- Reduction of Indemnity/Reserve in Relation to Written Premium
- Greater success rate at mediation
- Greater savings from the mediation process
Analytics Insights
- Return on Legal Expense (ROLE): Plaintiff’s demand minus legal fees and expenses minus indemnity
- ROLE %: ROLE divided by Plaintiff’s demand
- Results of benchmarking against prior performance and other providers
- Identification of optimal point of settlement
- Identification of most valuable litigation efforts
- 80/20 rule on impacting high exposure cases
- Analysis of billing data (potentially to the tenth of an hour) to determine efficiency and impact in legal spend
- Identification of characteristics of candidates for early resolution
- Prediction of optimal amount of work per file
- Prediction of optimal file life
- Compliance with the HLCA
- Management of attorney’s file inventory for most effective and efficient file handling
- Combined customer impact score
