9Insurance Business ReviewFebruary - March 2024media quickly moves on from the reporting of a large verdict and rarely comments on the amount of the ultimate outcome following post-verdict motions and appeals which may be months or even years after the initial verdict. This lack of balance in the media reporting when those big nuclear verdicts are ultimately cut down and right-sized is helping to fuel social inflation.The value of experienceAn experienced claims team brings vast knowledge to the table. An organization may face one claim, but having an expert team on side that has seen hundreds to thousands of similar claims and is prepared to share the knowledge that comes with that level of experience is invaluable. Claims specialists who are deeply embedded in their clients' market, know who the plaintiff's counsel is, are familiar with the jurisdiction, and seen similar scenarios unfold not just from a particular client's perspective, but from the perspective of dozens of organizations in the same boat. All of that information is brought to bear when helping insureds make decisions about how to proceed in the face of a claim.When a claim is subject to social inflation, it is essential to develop case strategy early and to consider novel approaches to litigation. On most severe claims, organizations should seek advice and assistance from counsel and claims specialists for effective and creative trial preparation from the outset and not simply "processing" the claim. The defense should look for opportunities to resolve claims with liability issues, but be prepared to aggressively and creatively defend these matters if plaintiffs' counsel prove to be unreasonable. Having an experienced claims team in your corner with a strong record of working with insureds makes all the difference to the outcome. For example, our team at Beazley will have open conversations with our clients about the fact that sometimes winning looks different. In a perfect world, you want the defense jury verdict, but you have to foresee the longer play and know that sometimes settling can be the best outcome for your organization. Sometimes winning is deciding to settle below value, eliminating the risk, and moving on.With the cases that do go to trial, not everyone gets a defense outcome every time. But if our clients are afraid to ever try a case, or if we, as their claims team, are afraid to try a case, we will only feed the beast of social inflation in terms of settlement values. The fear of trying a case means the settlement valuations will only continue to creep upwards. By taking those cases that are defensible through a trial to a verdict and getting that defense verdict, we can help to keep the valuation of settlements in check.Partnership and rapportWhen companies buy insurance, they are not just buying financial recompense in the event of an incident. The key to successfully recovering from any incident, keeping your reputation, and minimizing the impact on the business lies in picking the right insurance partner ­ and a big piece of this is finding the right match with the claims team.Partnership and open dialogue and rapport is an essential part of building understanding and trust, which is why client-centric claims teams build close relationships from the outset. So when claims do arise, they are able to work in partnership with the client to come to a pragmatic solution ­ and to stand by their side advise and guide them through the process. As social inflation and nuclear verdicts continue to evolve, the right claims partner will increasingly be a critical resource for clients, helping them to make smart, well-informed decisions that make a genuine difference to the outcome of their case. An organization may face one claim, but having an expert team on side that has seen hundreds to thousands of similar claims and is prepared to share the knowledge that comes with that level of experience is invaluable
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