Insurance litigation and the Lpo's

If there is one area of law that seems perfect for implementation of a technology-based legal process outsourcing (LPO), insurance litigation could be that field. Of course, a more accurate hypothesis can be stated thus:

“There are some core features of insurance litigation that lend themselves extremely well to various tech-heavy LPO’s that are currently functioning.”

The first feature of insurance law which justifies use of an LPO model is that of volume and specifically many subtypes of insurance fields are driven by paperwork. Documents, claims, policies, legal papers and so on which pile up into a mountain. When we discuss about motor vehicle insurance, there lies the no-fault, liability insurance, property damage, etc. In the segment of Workers' Compensation insurance and health insurance, there is an abundance of documentation which now seems to be an inescapable part of life in these types of involved businesses and these services have to be performed in a cost effective manner. The other main feature to be noted is that the other actors relevant to the insurance industry can focus on their core business practices without having the clerical activities bogging the insurance companies, the health facility sector, law firms and others.

The other main focus to be given is that of work specialization since the way the insurance is regulated in various states. Thus, this makes insurance-based litigation a top candidate for LPO. To quote, in New York, which is one of the no-fault states and if one is dealing with no-fault insurance, chances are that, there is one main set of regulations that govern how claims and related issues are to be addressed. Considering that there is often interplay between various types and kinds of insurance, the insurance litigation field tends to be striated, allowing lawyers and other paralegals, who are located offshore to gain familiarity gradually with the issues involved. In substance the claim forms and policies doesn’t differ much. Basically contract based, the litigation which arises out of policies of insurance involves the static provisions and conditions stated in the policy and not on speculation of meeting of minds of the parties, when one considers the reimbursement in individual cases.

The other aspect which is of importance to the above industry is that of differing technological capabilities. Like whether, the attorney or paralegal handling the case have to request the file from a different storage located on a different floor or another building, or the individual can just punch few keys and bring up the images of the documents, or is there a template generator which can bring data which includes citations, legal arguments from the system? However, the impact that technology can have on the outcome of the legal matters will provide a peep-in, how the world’s law-technology both together combine and form a powerful system on the whole.

The other relative factors of consideration are cost of each matter, storage expenses, filing by electronic means etc. The above overview provides one with a reasonable degree of glimpse and insight into the above subject.