The Top 5 Law Department Metrics for Insurers [Infographic]

by | Jan 8, 2016

The Top 5 Law Department Metrics for Insurers [Infographic]-header

Law departments within insurance companies demonstrate a high level of sophistication in corporate legal maturity.  Consider the following:

  • Legal costs are lower. Median partner billing rates are the lowest among the practice areas tracked by the CounselLink® team.
  • Rates tend to be stable. Legal rates in insurance work also have the least volatility with a score of 2 out of a possible 10.
  • Highest AFA utilization. Legal departments in insurance have the highest AFA utilization rates – 15.6% of matters structured under alternative fees.

These data points stem from the most recent Enterprise Legal Management Trends Report (Mid-Year Update 2015), which is based on invoices processed.  However, to gain a better understanding of operations within insurance – and specifically legal departments within Property & Casualty (P&C) carriers – we surveyed 94 organizations to identify:

  • What legal department metrics are being used?
  • Which metrics are most effective?
  • What cost control initiatives are being implemented in the New Year?

Top 5 Legal Department Metrics 

The top legal department metrics – those metrics law departments identified as most effective for insurance carriers are:

  1. Average total cost of case (loss + legal costs): 84% use it and 72% rate it effective.
  2. Legal expense per case: 82% use it and 65% rate it effective.
  3. Cycle time (days to resolution): 82% use it and 62% rate effective.
  4. Loss per litigated case: 77% use it and 60% rate it effective.
  5. Allocated loss adjustment expense (ALAE) as % loss ratio: 71% use it and 60% rate it effective.

These results have been rendered in a visual format in the infographic nearby and are this week’s Friday Share.  In addition, we’ve published a summary of the findings here and the complete report can be downloaded freely with registration:  U.S. P&C Law Departments Rate the Metrics They Use to Manage Costs and Performance.

Infographic: Law Departments Rate Metrics to Managed Costs

click here or image for higher resolution

Law Departments Rate Metrics Used to Managed Costs-small

If you enjoyed this post, you might also like:
9 Neatly Organized LexisNexis Reports and Studies from 2015

Photo credit:  Flickr, Martin Fisch, give me five (CC BY-SA 2.0)

Contributing Author

Contributing Author







    Request a Demo

    To learn more or schedule a demo, simply fill out the form below.

    First Name *

    Last Name *

    Work Phone *

    Work Email: *

    Job Title *

    Company *

    Country *

    LexisNexis, a division of RELX Inc. and our LexisNexis Legal & Professional affiliates may further contact you in your professional capacity about related products, services and events. You will be able to opt-out at any time via the unsubscribe link provided within our communications or manage your communication preferences via our Preference Center. For more information, see our Privacy Policy.

















      Contact Us

      To talk to a representative, simply fill out the form below.

      First Name *

      Last Name *

      Work Phone *

      Work Email: *

      Job Title *

      Company *

      Country *

      LexisNexis, a division of RELX Inc. and our LexisNexis Legal & Professional affiliates may further contact you in your professional capacity about related products, services and events. You will be able to opt-out at any time via the unsubscribe link provided within our communications or manage your communication preferences via our Preference Center. For more information, see our Privacy Policy.