Harnessing Technology: A Catalyst for Change in Litigation Management

Thought Leadership

May 1

BY DWAYNE HERMES

The Claims and Litigation Management (CLM) Study of 2023 conducted by Suite 200 Solutions delivers compelling insights into the future of technology investment in litigation management. It reports that 75% of insurance industry participants predict an uptick in technology investment in the next three years, indicating a shift towards modernization within the industry.

This white paper will discuss the reasons behind this strong consensus, leveraging the real-world experiences of Hermes Law and ClaimDeck, and demonstrate why this decision is both necessary and promising.

The Importance of Technological Advancement in Litigation Management

To understand the factors leading to this expected growth in technology investment, we first need to understand the experience of firms like Hermes Law, a Texas-based insurance defense firm, which is deeply involved in the technology-enabled transformation of litigation management.

Founded over seven years ago, Hermes Law set out to revolutionize the way law firms operate and deliver litigation services to the risk industry. With this mission, Hermes Law developed the Hermes Law Case Architura (HLCA)—a collection of litigation planning reports, custom budgeting and case valuation tools, bordereaux, and risk management reports. These tools were manually created using spreadsheets and PDFs, which was laborious and time-consuming. The advent of ClaimDeck, a co-founded technology firm, served to tech-enable these HLCA tools, bringing about a sea change in the handling of litigated cases for all of Hermes Law’s risk industry clients.

The result? A growth rate of over 50% for Hermes Law since adopting ClaimDeck less than a year ago.

The Case for Technology Investment

A five-year study by Hermes Law revealed that the application of processes enabled by ClaimDeck brought about a double-digit percentage reduction in average case life and average legal and indemnity spend. The result was achieved by having a clear resolution strategy, defined legal budgets, precise case valuations, and tasks necessary for defending the case. The process also further enabled earlier resolutions—meaning, an optimized legal spend that helped achieve an ideal resolution point faster than routine defenses.

Yale case study based on 5 years of claims litigation data.

For law firms, the benefits from a tech-enabled service delivery are multifaceted—employee attraction and retention, client retention, enhanced workload management, data-driven performance insights, and ultimately, improved profitability.

Pioneering Generative AI

The significance of generative AI in legal service delivery is recognized universally. The journey to leverage generative AI necessitates the availability of data—structured data, to be precise. Hermes Law, in partnership with ClaimDeck, has been generating a wealth of this valuable data, positioning themselves favorably for AI use. With over 500 categories of structured data per case and over 1500 individual data points within these categories, Hermes Law, ClaimDeck, and their client partnerships are uniquely equipped for the era of AI-driven litigation management.

Looking to the Future

The anticipated increase in technology investment in litigation management underscores a recognition of the profound value that technology brings. As illustrated by the experiences of Hermes Law and ClaimDeck, technology integration can revolutionize litigation management, from enhancing efficiency and client satisfaction to paving the way for future AI applications. This collaboration presents a model of the potential for carriers and their law firms, benefitting not only their insureds but the entire risk industry ecosystem.

As we look to the future, the findings of the CLM Study and of Hermes Law and ClaimDeck from their collaboration serve as a call to action for other firms, both carriers and law firms, in the risk industry. Investing in litigation management technology isn't just a prediction—it's a strategic imperative for the industry's progression. Now is the time to join the journey and embrace the revolution brought by technology, enabling a future where litigation management is more efficient, cost-effective, and prepared for the ever-evolving landscape of the legal industry.

VIEW CASE STUDY ➞

To further discuss the insights shared in this paper and explore how your firm can benefit from technology in litigation management, reach out to Hermes Law and ClaimDeck. We are at the forefront of this technological revolution, and we look forward to guiding you on this transformational journey.

This white paper is part of a series aimed at sharing insights and findings from the 2023 CLM Study and applying them to real-world experiences. Stay tuned for subsequent entries that will continue to explore these themes and provide actionable insights for the risk industry.