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CLOU: Leveraging Cloud Computing Strengths

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CLOU: Leveraging Cloud Computing Strengths

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There are three things that are guaranteed in life: death, taxes, and cloud computing. And there are no ETFs that focus on death and taxes, so let’s talk about the Global X Cloud Computing ETF (CLOU), which

Markets aren’t as efficient as conventional wisdom would have you believe. Gaps often appear between market signals and investor reactions that help give an indication of whether we are in a “risk-on” or “risk-off” environment.

The Lead-Lag Report can give you an edge in reading the market so you can make asset allocation decisions based on award winning research. I’ll give you the signals–it’s up to you to decide whether to go on offense (i.e., add exposure to risky assets such as stocks when risk is “on”) or play defense (i.e., lean toward more conservative assets such as bonds/cash when risk is “off”).

6 Strategies for Successful SaaS Sales in a Recession: How to Thrive as a Salesperson

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6 Strategies for Successful SaaS Sales in a Recession: How to Thrive as a Salesperson

6 Tips to Help You Thrive as a SaaS Salesperson During a Recession

Did you know that during the economic downturn of 2020, caused by the pandemic, nearly 100,000 small businesses temporarily closed their doors and are now out of business? It’s a frightening statistic, but as a SaaS salesperson, there are specific strategies to not only weather a recession but to come out stronger on the other side. We’re here to provide you with tips on how to be proactive and ensure your career in SaaS sales remains resilient.

While Bloomberg predicts a 72% probability of a recession, it’s unlikely to result in a sudden stoppage of the global economy. However, there may be economic challenges ahead, and it’s crucial to consider how you, as a SaaS salesperson, can not only survive but thrive in this environment.

Here are actionable tips tailored to SaaS salespeople that can help you navigate a recession successfully and potentially achieve significant gains in 2024.

Analyze Your Cash Flow

Understanding how money flows into and out of your SaaS sales role is essential. It allows you to identify unnecessary expenses that can be cut, freeing up resources for revenue-generating activities. Consider the following steps:

  • Review your expenses for redundant spending. Are there tools or services that you can do without?
  • Evaluate your software stack and look for opportunities to consolidate subscriptions that serve similar purposes or find cost-effective alternatives.
  • Explore renegotiating the prices and terms of the services you use to optimize your operational costs.

Strengthen Customer Relationships

Building and nurturing customer relationships is paramount for SaaS salespeople. A strong bond with your clients fosters brand loyalty, enhances customer retention, and increases the chances of repeat sales. Take into account that customer experience is a significant factor in customers’ decisions. In fact, a PWC study revealed that 73% of consumers say that customer experience is an important factor in choosing businesses to purchase from, yet only 49% of consumers in the U.S. agreed to have had good customer experiences with businesses. Prioritize your clients, actively engage with them, and provide exceptional support. It’s a simple way to gain an edge as competition for customers heats up in an economic downturn.

Leverage your SaaS CRM to track customer interactions, preferences, and issues. This data can guide you in delivering tailored solutions, building trust, and securing future business.

Save and Explore Financing Options

To thrive as a SaaS salesperson during a recession, it’s crucial to be proactive, not reactive. Begin saving a percentage of your earnings in a dedicated account. This reserve can be a lifeline during economic challenges.

Additionally, consider seeking low-risk loans and grants in advance. Securing financing while your career is stable is more manageable than waiting until the recession threatens your financial stability. Explore resources like the Small Business Administration (SBA) and Grant.gov for loan and grant opportunities.

Invest in Strategic Marketing

Marketing for SaaS salespeople not only drives sales but also provides insights into your target audience, expands your brand’s reach, and maintains customer trust. While some companies may cut marketing budgets during a recession, it also presents opportunities:

Reduced competition in the advertising space can lead to lower ad costs. Take advantage of this to boost your visibility.

Focus on marketing channels that yield the best results for your SaaS sales role, such as email marketing, known for its high ROI and flexibility.

Focus on Profitable Offerings

Assess your suite of SaaS products and services and identify those that are thriving and those that are underperforming. Concentrate your efforts on promoting the profitable ones and consider improving the performance of the weaker offerings or discontinuing them to streamline your sales efforts. For example, a product that requires little customer support from your team might be a better sell than an offering that is more difficult to scale.

By concentrating on your top-performing services, you can optimize your approach and maintain a lean focus on the products and services that are in demand.

Embrace Marketing Automation

During a recession, it’s essential to focus on long-term growth, not just short-term cost-cutting. Marketing automation can be a game-changer for SaaS salespeople, allowing you to:

  • Automate repetitive tasks, saving time and resources.
  • Enhance efficiency and increase conversion rates.
  • Gain insights and accurate reports on customer behavior and campaign performance.

Implementing marketing automation can help you cut costs and improve your overall workflow, freeing up resources for long-term success.

In challenging economic times, salespeople who plan, act early, and remain prepared can not only survive but also thrive. As a SaaS salesperson, proactivity, strategic planning, and utilizing the power of technology can help position your career for success, ensuring that a recession won’t spell the end for your sales endeavors.

Tap into the power of marketing automation without spending a dime. Request a free BenchmarkONE account today!

What are the reasons for the increase in car insurance in 2023?

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What are the reasons for the increase in car insurance in 2023?

If you’re looking to renew your insurance, you might be facing higher costs than usual. But why is this, especially when you haven’t claimed on your insurance? We explore the factors that are potentially leading to rising car insurance premiums in 2023.

Are insurance premiums really rising?

According to ABI, insurance premiums are indeed up year on year, and they’ve been rising steadily over the last few quarters.

The study shows that, in Q4 2022, the average price paid on renewal rose 8%, and the average price paid for a new policy in the fourth quarter of 2022 rose by 7% from the previous quarter. Further research suggests that this trend has continued into 2023, with prices up 21% in Q2 2023 compared to Q2 2022.

So why is this happening? In order to understand this, you first need to know how insurance premiums are calculated.

How are insurance premiums calculated?

Essentially, insurers calculate premiums by estimating the risk involved, and ensuring that the premiums they set for individuals cover the claims of those who need it.

If you take a look at your insurance policy documents, you’ll probably notice that your insurance covers quite an array of services, all of which need to be covered by the policies that are in place. Your policy might include:

  • Unlimited third party personal injury cover
  • Up to £20m of third party property damage
  • Cover for own vehicle accidental damage
  • Cover for vehicle theft and fire
  • … and many more

What’s causing the increase in insurance premiums?

Premiums have increased recently because of high inflation. Ultimately, the insurance provider still needs to cover all the costs involved when someone makes a claim on their insurance, but inflation causes these costs to become more expensive.

This means that the costs involved with repairing and sourcing parts for your vehicle, such as replacing its battery or fixing electrical problems, are higher.

Other costs, such as legal fees or hiring a replacement vehicle while your own is getting repaired, have also increased as a result of inflation.

This has meant insurers have had to raise premiums so they can cover the costs of the insured losses.

Why has my insurance increased above inflation?

Person looking at inflation graph on phone while drinking coffee

Unfortunately, a lot of the costs involved with paying out for claims have increased above inflation.

ABI’s research shows that average vehicle repair costs have increased by 46% in Q2 2023 compared to Q2 2022, and the costs involved with providing replacement cars while vehicles are being repaired have increased by 52% in the same period. These two examples show that costs have increased far higher than inflation rates; the peak inflation rate was 11.1% in October 2022.

Although car insurance premiums are meant to cover the cost of claims, ABI’s recent research shows that claim payouts have increased at a faster rate – 29% year on year – than the average insurance premium in Q2 2023 (21% year on year).

Can we expect insurance premiums to decrease now that inflation rates are coming down?

Person talking on the phone outside

Not necessarily. The price increases outlined above are unlikely to fall. Although there has been a decrease in the inflation rate, this doesn’t mean that the prices of goods and services are falling; it just means that they’re increasing more slowly.

How do premiums compare to pre-coronavirus levels?

Although inflation has increased each year since 2019, you might be surprised to learn that the average premium was lower in the first quarter of 2023 compared to the Q4 2019. Whereas in Q4 2019, the average premium was £483, in Q1 2023, the average premium was £478.

Are there any other factors that are affecting insurance premiums?

Yes, there are a number of other factors that are increasing insurance premiums.

Over the last couple of years, there have been a number of supply chain issues, meaning that some car parts are taking longer to source. These delays have a knock-on effect by increasing costs for the insurer. For instance, if a part cannot be sourced for a few days, the vehicle cannot be repaired, which means that insurers must pay for a customer’s courtesy car for longer.

In addition to this, in general, prices for repairs have increased as technology has improved. This is because newer vehicles are more sophisticated and often include cameras, sensors and screens that are more expensive to repair and replace than older vehicle parts.

I’m taking car insurance out for the first time and it’s really expensive. Has it always been this way?

Concerned woman on the phone

There are a number of factors involved with calculating risk. If you’re a new driver – especially one in your late teens or early twenties – you might find that your insurance premiums are quite high. This is generally because you haven’t built up a no claims bonus (NCB), which essentially acts as “proof” that you’re a relatively low risk to insurance providers.

In addition to this, from the 1st January 2022, the Financial Conduct Authority (FCA) banned insurers from providing new drivers with discounted policies as the additional cost was often passed onto loyal customers who had stayed with their insurance provider for a number of years.

This means that cover for your first year or two of driving might be more expensive than individuals who were in your position a few years ago.

Why are Land Rovers so expensive to insure?

As well as the factors explained above, the cost of Land Rover insurance has increased significantly over the last couple of years. This is mainly due to a recent increase in thefts of higher-end vehicles such as Land Rovers – particularly in urban areas.

To account for the additional risk involved, insurance companies have increased the premiums involved with insuring these vehicles. In some cases, insurers are refusing to cover Land Rovers entirely.

Read more about why Range Rover insurance is so expensive.

Why are electric cars so expensive to insure?

Woman plugging electric vehicle into wall socket

According to a study conducted by Thatcham Research, battery electric vehicle (BEV) claims are around 25.5% more expensive than their internal combustion engine (ICE) counterparts and take around 14% longer to repair, which is likely contributing to the increased cost of electric car insurance. Other factors involved include a higher claim rate for EVs than ICE vehicles; this is usually 25% higher for EVs.

So what’s contributing to these factors, and why is EV insurance so expensive? This is due to a number of factors, including the limited repairability of EVs, a lack of training in EV repair for mechanics, higher component costs, and the increased fire risks involved after a crash.

Lack of training in place for EV repairs

Mechanic working under the bonnet of car

Research from the Institute of the Motor Industry (IMI) revealed that, as of 2020, only 6.5% of the current motor mechanic workforce is qualified to service EVs, and this skills gap is likely to continue into 2030 if it isn’t addressed.

Thatcham Research’s study shows that Vehicle Damage Assessors (VDAs) often lack the necessary skills, training and tools to properly assess EVs because of their technical complexity. High voltage (HV) battery damage in particular is often misdiagnosed. This can cause more EVs to be incorrectly evaluated or written off, which in turn increases electric car insurance costs.

Low repairability of EVs and high component costs

The most significant reason why BEVs are more expensive to repair is due to the low repairability of HV batteries used in EVs.

HV batteries are extremely expensive to replace; often they will cost more than the average used value of the vehicle they’re powering, which can mean that the vehicle is cheaper to write off than repair. What’s more, basic garage repairs for EVs can cost up to 400% more for EVs than their combustion engine counterparts. These costs must be accounted for and reflected in insurance premiums to cover the risks involved with the vehicle.

More risks involved after a crash

When BEVs are involved in a crash, this can damage the vehicle’s HV battery, which increases the risk of fire breaking out. As a result, BEVs with potentially damaged HV batteries must be monitored for 48 hours after the incident in an outside quarantined area 15 metres from other nearby objects (including other vehicles). This means that EVs with suspected HV battery issues take up more space in garages than ICE vehicles, which further increases the costs involved with diagnosis and repair.

How can I reduce my insurance premiums?

Person on the phone looking happy

It’s usually better to focus on ensuring your insurance policy provides adequate cover for your needs. Focusing on price could mean that your policy doesn’t include cover for things that are important to you, meaning that you end up having to pay out of pocket for these extra aspects when you need to make a claim.

That being said, we have a number of tips for those who want to save on their insurance. Read our blog of more than 20 simple steps to reduce your car insurance premiums and save money.

Get tailored car insurance from Adrian Flux

If you’re in need of car insurance now, we would suggest getting a quote from a specialist insurance broker like us. We compare quotes from 30 insurers and make sure we know your exact needs so you don’t waste money and only pay for the cover you require.

As a specialist insurance broker, we are also able to cover a wide range of vehicles, from standard cars to classics, imports and modified vehicles. Call us on 0800 369 8590 for a quote, or book a callback for a quote.

Earn Bitcoins Online | Make Money Online

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Earn Bitcoins Online | Make Money Online


Thanks for tuning in to [Wealth Manifesto] – where we empower you to achieve lasting financial success! #WealthBuilding #FinancialSuccess #GetRichSlowly #LongTermInvesting #FinancialFreedomTips

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Switzerland’s Corporate Taxation System

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Switzerland’s Corporate Taxation System

Corporate Taxes in Switzerland

Taxes are essential to consider when starting a business in a developed country like Switzerland. This article will discuss the corporate taxes in Switzerland and shed light on factors to consider before expanding internationally.

Factors to Consider

Switzerland is known for its beauty and dynamism, offering a high standard of living and a highly educated workforce. However, the high cost of living and expensive real estate in Switzerland are crucial factors to weigh.

For online businesses not planning to reside in Switzerland, immigration policies may not be a concern, but import-export duties should be considered.

Budgeting for high costs is important, as Switzerland boasts some of the world’s highest wages and relatively expensive real estate. Real estate costs should be researched in different Swiss cities to find the most competitive market.

Switzerland’s diverse landscape and lifestyles across its 26 cantons offer various business opportunities. The best location for your business in Switzerland will depend on costs, competition, target audience, and workforce, and conducting in-depth research is necessary to determine the ideal location.

Corporate Taxes in Switzerland

Corporate residency in Switzerland is granted when the legal headquarters or domicile of a company is located within Swiss borders. Permanent establishment (PE) is significant for Swiss tax regulations, signifying a fixed business location responsible for the operational activities of a company.

As of July 20, 2023, resident companies operating in Switzerland are liable to pay Corporate Income Tax (CIT) on profits generated within the country, imposed at the federal, cantonal, and communal levels. Non-resident companies may become subject to Swiss CIT under various circumstances, with the approximate range of the maximum CIT rate on profits before tax falling between 11.9% and 21.0% based on the corporate residence location within a specific canton in Switzerland.

Switzerland imposes various federal excise taxes, securities transfer tax, issuance stamp tax, and property taxes in addition to CIT. Employers handle social security contributions on behalf of employees in the Swiss social security system that includes old-age, survivors, and disability insurance. The taxable period in Switzerland is the business year, matching the accounting period that can end on any date in a calendar year, and companies file annual tax returns for corporate income and capital taxes, with tax payment made when a demand is received based on the provisional or final assessment.

Deep Value Investments Blog: Review of End of 2023 Shows Disappointing +0.8% / +5.4% Growth

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Deep Value Investments Blog: Review of End of 2023 Shows Disappointing +0.8% / +5.4% Growth
Usual end of year review here. It hasn’t gone well, overall +0.8 (excluding Russian frozen stocks) or +5.4% including Russian frozen stocks. If Russia goes back to normal will be up far more as there are a lot of dividends waiting to be collected, not included in the below.
Linking back to last year I was pretty much wrong about everything. I was heavily into natural resource stocks (c57% weight vs 41% now), not the best sector in 2023. Some of the fall in weight is due to me mildly cutting weights as stocks didn’t go my way / though quite a bit is due to price falls. I had moments of good judgement – saw the possibility for political change in Russia – which very nearly came about with the Prigozhin mutiny, got into financials late in the year. Broadly things haven’t worked. There is a mild positive element to this – if I can be pretty wrong on almost everything and still not lose *much* money it’s not too bad – but it’s far from ideal given time I put in / potential returns. It’s also positive I havent gone off the rails after the large Russian loss last year – its easy to chase / raise exposure, which is something I don’t think I have done. There is an argument around stops – which I don’t use – going to be a little more careful with stocks bought at highs – particularly Hoegh Autos.
Weights are below:

…And so on.

Huawei’s HarmonyOS Poised to Surpass Apple’s iOS in China in Near Future

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Huawei’s HarmonyOS Poised to Surpass Apple’s iOS in China in Near Future

The rise of Huawei seems like a comeback story, especially with the attention being pulled away from Apple’s iPhone. Just a few years back, Huawei offloaded its budget smartphone division due to pressure from U.S. trade blacklists. Now, the Chinese electronics giant is making waves in the high-end phone market.

The company’s HarmonyOS operating system is poised to overtake Apple’s iOS in China this year, as reported by TechInsights and cited by the South China Morning Post . The decision to develop its own operating system came as a response to U.S. sanctions imposed on the Chinese company. Huawei previously used the Android operating system in its smartphones, but announced HarmonyOS in August 2019, shortly after being added to the Entity List by the U.S. government. The move was described as a “Plan B” to combat restrictions on using key hardware or software of U.S. origins.

HarmonyOS has been successful in getting off the ground, with Huawei preparing to abandon Android entirely. Chinese firms are rushing to develop HarmonyOS-compatible versions of their apps, with more than 700 million devices currently running on HarmonyOS.

Huawei’s comeback

Huawei’s return to the 5G smartphone market with the Mate 60 Pro in August last year proved to be a significant success. The company captured about 13% of China’s smartphone market in 2023, up from 7.6% in 2022, according to Ivan Lam, senior analyst at Counterpoint Research.

Meanwhile, Apple is facing challenges of its own in China, with new regulations requiring all programs sold on Chinese app stores to have a government-issued license. This could lead to Apple having to remove thousands of apps from its Chinese store. These developments may pose a threat to Apple, considering the importance of China as one of its overseas markets.

A Guide to Delegation for Token Holders

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A Guide to Delegation for Token Holders

For many reasons—from saving gas costs by bundling votes to token holders not having time to maintain the context to thoughtfully vote on proposals—delegation has emerged as the primary mechanism for DAOs to boost governance participation and make decisions more effectively. 

DAOs like Uniswap, Arbitrum, Optimism, and ENS are all delegate voting DAOs, meaning token holders can delegate their voting power to an individual or group to vote for them. It’s essentially representative governance with optionality to choose your representative or exercise direct democracy if you want to cast votes yourself.  

Being a token holder in a delegate voting DAO is a powerful role. By delegating tokens, you’re assigning voting power, and therefore decision-making power, to another address. So how do you choose the delegate that will best represent your interests?

We interviewed delegates across the ecosystem to hear the standards they would set when delegating their tokens. Let’s cover the broad topics they recommended token holders look into when determining who they should delegate to.  


Are their incentives aligned with yours?

Incentive alignment was the topic that came up most in our interviews with delegates.

5 Must-Have New Year’s Eve Party Favors

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5 Must-Have New Year’s Eve Party Favors

As the New Year approaches, you want to ring it in with style in a way that shows off who you are as an organization. Lucky for you, there are so many ways to do this that can make your team happy and avoid gifting them things they do not want.

Below, we run through five major concepts for New Year giveaway ideas and give you some different ideas for each one. As you read through, make a note of which ones you think would suit your team best, and start making your New Year’s party gift list.

1. Elevate Any Party With Custom Bar Tools and Glassware

Branded glasses and bar tools can be great New Year party favors, in part due to the likelihood of celebration drinks during the holidays. They serve as a lasting memory of the event, and your team can then raise your brand’s image with every toast they make.

Personalized Glasses

A New Year’s party is not the same without drinks, alcoholic or otherwise. Go the extra mile by supplying everyone on your team with a piece of glassware that reflects who they are.

This could include their name and department, and even a logo for their role if you want something even more special to celebrate their success.

Branded Glassware

Instead of personal engravings, think about offering company party favors in the form of branded glasses instead. This promotes camaraderie and may even inspire conversation when your team hosts parties at home.

Patterned Drinkware

Remember you do not only need to use glass tumblers for this. You can etch a unique design into wine glasses, beer mugs, shot glasses, or anything else you believe your team would appreciate.

You could even gift them to your team with a drink in them, making the realization that they have received a gift that’s a little bit more refreshing.

2. Holiday Gifts That Leave an Impression

It is not only party decorations and speeches that uplift an event. Traditional gifts themed around your team can bring feelings of shared success. These corporate gifts are thoughtful mementos of how much you appreciate those working to help your company succeed.

Custom Calendars

Calendars are always a good choice for a promotional product nearing the New Year. Thinking about how your gift recipients will use them & where may help narrow down your choices when selecting something they will use all year long. While smaller desk calendars may be best at work, larger wall calendars are great for use at home.

3. Remember Your New Year’s Resolutions

Having a way to record and remember the things people say throughout the year can boost retention and productivity. Alternatively, your team may want to write personal song lyrics, poetry, or grocery lists using the stationery you provide. It does not matter how they use it, so long as they appreciate the thought.

Embossed Leather-Bound Luxury Journals

There is nothing quite like the premium feeling of leather to make something feel opulent. With an addition of embossed detail, the texture promotes feelings of pure luxury alongside everything else.

Whether the team uses these for meetings, personal notes, or goal tracking, you can expect them to treasure such high-quality gifts. In some cases, they may even end up on a bookshelf, never used but always displaying your branding, because “they are too nice”.

Executive Pen Sets

A high-quality pen can make a fantastic impression when signing documents or working in front of clients. You don’t want a high-profile partner, for example, to sign an important document with a cheap Bic pen.

Consider whether your team would prefer fountain pens or ballpoints, and if you want them personalized or branded. You may even want to inquire with them, especially if you know some are prolific writers.

In some cases, you may even have a few left after the event you can offer to high-profile clients or gift to your best employees over the year.

Personalized Planners

Planners are not only thoughtful gifts, but very useful. Consider who will be using them, and how different covers or customization options may appeal to various roles within your team. Adding your branding is always a good idea, with visibility all year long.

4. Boost Employee Wellness With New Year Gifts

It is important that those on your team understand how much you care about their well-being. Boost this knowledge by giving them ways to look after their minds and bodies, from hydration to fitness encouragement after the New Year. After all, people tend to go to the gym more in that first month.

Wellness Party Favors

Branded Water Bottles

People sit at their desks for long periods and then often go to the gym after. During each of these activities, water bottles can serve as a hydration reminder. Your team will be proud to utilize something branded with the company logo.

Personalized Yoga Mats

Not everyone may do yoga, but for those who do, a mat is always a welcome gift and a way to promote choosing a healthy lifestyle. If they already have one they prefer, they can use it to invite friends to join them and get more of their peers into the activity.

Unique Fitness Trackers

When people start to get fit, it can be very useful to give them a way to start setting goals or even gamifying their experience.

Pedometers and other fitness trackers can turn the process into more of a game, ensuring people hit their goals every day. Of course, with the New Year around the corner, there is no better time to start moving more to burn off all that holiday food.

Personalized Aromatherapy Gifts

The benefits of aromatherapy can have a knock-on effect on boosting your team’s output. With stress reduction and increased relaxation, you can help prevent burnout.

If your office lease allows it, you could even couple the gift of aromatherapy candles and diffusers with a relaxation workspace. Set aside a quiet room for people to light a candle or spread peaceful aromas around and close their eyes for a few moments. Be sure people do not steal it for meetings, though, and try to keep its purpose sacrosanct.

5. Prepare Your Team for New Year’s Travel

Whether your team travels as a part of their role, or if they like a vacation now and then, equip them to relax on the journey. With customized power banks, travel pillows, and more, they can either work easier during the trip or get the rest they need.

Travel Party Favors

Branded Luggage Tags

Travel can be stressful, and your employees want to know they will find their items no matter where they are. Help them find their items when they pick them up from a baggage carousel with branded tags. After all, who else would have your company’s logo?

Personalized Power Banks

Place your logo on a charging power bank to ensure your team knows that you can support them no matter where they go. Make sure it has a good range of charging ports, so that you get the right ones for each team member. You don’t want to give someone who needs a USB-C connection a charger without one.

Unique Travel Kits

Sleep masks, earplugs, and travel toiletry kits can make the journey a little bit more bearable.

You could even use this as an opportunity to espouse company values too, such as the value of preparedness.

Maximizing Brand Visibility With New Year Giveaway Ideas

Making your New Year’s party unforgettable will be much easier with the above options in the hands of your team. Company party favors can be something everyone can enjoy, so making sure your New Year giveaway ideas suit your team is very important. This is where we can help you ensure it all goes according to plan.

We offer many of the above options, including engraving and customizing items to match your needs. So, check out our New Year Party Favors today to find out exactly what we can do for you these holidays.

 

Enhancing P&C Claims Litigation Management: Innovative Strategies for Success in the Insurance Industry

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Enhancing P&C Claims Litigation Management: Innovative Strategies for Success in the Insurance Industry

According to AM Best Financial reports, between 2018 and 2023, litigation management costs for the combined Property & Casualty industry increased by 19%, amounting to an increase of $4-5 billion, or for context, bringing total litigation expenses to ~$24B of LAE.

In both personal and commercial lines, carriers have experienced the adverse effects of social inflation. While certain states and underwriting markets, such as California and Florida, continue to be known as problematic jurisdictions, carriers are revising their approach to managing litigated claim files across the board.

Plaintiffs have recently secured significant verdicts against carriers, with the ability to look across jurisdictions and carriers to develop tactics to secure “nuclear verdicts” that increase the overall cost of risk to businesses and consumers. According to AM Best, many of these verdicts also align with the new trend of treating litigation as an asset class. This trend is fueled by private equity and hedge funds seeking to create new sources of uncorrelated returns for investors from these substantial settlements.

The insurance industry is modernizing its approach to litigation management by embracing new legal management systems, improving the data hygiene of core claims systems, and leveraging advanced analytics and AI-driven decision support. This revolution in data utilization is enhancing the accuracy of claims settlement, enabling leading carriers to develop more effective methods for resolving litigated claims.

A crucial development in this domain is the creation of the Litigation Analytic Record (LAR) providing the capability to look across data that was previously siloed. This tool merges internal and external data about defense counsel, plaintiff counsel, claimants, policyholders, and more, offering a comprehensive view of all litigation data in one table, ripe for analytical insights and AI/ML processing at scale. It creates a much richer data set that allows for advanced segmentation and pattern recognition. These new insights have now reinvigorated the classic levers of litigation management.

Three primary focus areas where carriers are proactively settling litigated claims more effectively are:

  1. Litigation Strategy: Advanced Analytics and AI-Led Decision Support
  2. Enhanced Counsel Selection Criteria
  3. Performance Management of Panel and In-House Counsel

1. Litigation strategy: advanced analytics and AI-led decision support

In recent years, the insurance industry has experienced a significant shift driven by the explosion of data availability and data migration to the cloud. This transition has allowed carriers to easily access and combine data sources, including third-party information. As a result, insurance companies have set up new teams of claims experts and data professionals dedicated to uncovering insights and unlocking value from their data, leading to improvements in the way litigated claims are resolved and shifts in the claims operating model.

Notably, the use of AI has been instrumental in understanding the expected cost and complexity of each case, facilitating the creation of efficient litigation plans and budgets based on combinatorial insights from internal and external data sources. By having a clear path to resolution, carriers can optimize litigation expenses while ensuring more accurate settlements.

Other significant use cases include:

Plaintiff attorney profiles: By analyzing historical data, carriers can find patterns of behavior among plaintiffs who often bring cases against insured parties. This information can help insurance carriers better understand the motivations and strategies of these attorneys, ultimately aiding in developing more effective defence and negotiating strategies.

Strategic positioning: Carriers can use internal and external data sources to create a comprehensive view of each case, incorporating information about the parties involved, the venue, the type of case, and other relevant factors. This “single pane of glass” approach can inform decision-making and enhance collaboration between attorneys and adjusters, leading to improved outcomes.


2. Enhanced counsel selection criteria

Utilizing the aforementioned Litigation Analytic Record (LAR) to understand the relative size and scope of a panel law firm along with the ability to review historical case outcomes is essential when assigning cases. By leveraging data on attorney performance, carriers can match the complexity of a case to deliver the best total outcomes for the claim through a tailored counsel selection tool or framework. Additionally, visibility into the number of cases assigned to each firm can help carriers optimize the mix of open matters by complexity to maximize the performance of their panel firms and attorneys.

Historically, assigning counsel was often based on adjusters’ relationships with attorneys or their managers’ recommendations. However, developing counsel selection tools and frameworks that guide the influence of the claims adjuster in assigning counsel based on data and analytics can be a more strategic approach.


3. Performance management of panel and in-house counsel

C-Suite Insurance executives are facing increasing pressure to understand how major expenditures support strategic imperatives, particularly for line items with significant financial impact, such as outside defense counsel costs. The top 50 carriers in 2022 spent on average $500 million on litigation expenses, with outside counsel fees typically making up 80-90% of these costs, depending on their book of business, litigation strategy, and in-house counsel capabilities.

However, Chief Claims Officers often need more clarity on the total outcomes they are achieving from these substantial expenditures by focusing on both litigation expenses and the indemnity associated with those cases.

Leading carriers use data-driven solutions to gain insights into counsel performance to optimize legal spending. By combining claim records metadata with legal management and billing systems data, carriers can identify top-performing attorneys, ensure compliance with carrier guidelines, and rationalize their legal panel to maintain high-performing resources.

Carriers typically start by creating a blended scorecard that combines these different sources of data to provide a single source of truth to illuminate the performance of firms and attorneys with the outcomes delivered.

A high-performing legal panel is critical for effectively defending insureds when a claim is filed, particularly for commercial lines businesses. Some carriers have successfully highlighted their claims operation’s strength to brokers and agents, selling confidence in their ability to deliver value beyond the policy’s price when required.

Key use cases include:

Advanced case monitoring and escalation paths

Carriers can utilize event-based triggers and expense tracking to monitor the progress of cases against historical benchmarks provided by the Litigation Analytic Record. This enables them to make proactive decisions about escalating cases and allocating resources at the claim level, promoting an activist approach to claim file management. Automated management escalations, triggered by flagged changes in claim profiles and spending variances, provide enhanced oversight of pending files, allowing front-line managers to focus their time effectively with their teams. Carriers with high-quality data hygiene have taken further steps, enabling them to predictively address individual files before they deviate from the optimal path, resulting in improved outcomes.

Adherence to litigation plans and budgets

Inaccurate budgets can lead to poor reserving practices, particularly for carriers without visibility into the quality of budgets provided by counsel. Spending and event-based triggers, derived from the Litigation Analytic Record, offer visibility into cases that deviate from their original litigation plans and budgets. These event-based triggers help front-line handlers and managers stay on track when budget changes, spending forecasts, or the number of tasks deviate from expectations. Changes in these event-based triggers can lead to proactive realignment of litigation strategies based on developments in the file. For instance, if a claim is initially categorized as “lower complexity” but exceeds 75% of the budget faster than the benchmark, the adjuster can take remedial actions or collaborate with counsel to reconsider the litigation strategy for the file.

Blended scorecard for panel scoring and tiering

Many carriers distribute cases among panels unevenly, often with 80% of cases and paid losses handled by National Firms operating across multiple lines of business and states. Leading carriers leverage blended scorecards that assess not only law firm and individual attorney performance based on claim types but also gauge adherence to their operating guidelines to enhance overall outcomes. Aligning claim cohorts with historical claim outcomes by attorney and firm enables carriers to distinguish their top performers from the remainder of the panel (or in-house counsel). Concurrently, it streamlines the allocation of the most challenging cases and best hourly rates to the highest-performing firms and attorneys, ensuring their proven expertise is leveraged where it has the most impact. This strategic shift towards evidence-based panel management optimizes resource deployment and steadily improves overall claim outcomes.

If you’d like to learn more about how advanced analytics and AI-led decision support can help people make smarter decisions about litigation strategies, amongst a host of other benefits, please read our Fuel the future of insurance through technology report. If you’d like to discuss in more detail, please reach out to Kenneth Saldanha or Jeff Mitch.

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