Boosting Economic Resilience: How Insurance Companies Can Leverage Legal Technology for Success

In today’s world, insurance companies need to run their legal operations smoothly. With litigation getting more complicated and expensive, managing costs for claims and legal departments is crucial, especially as many firms faced layoffs recently.

When finances tighten, it’s essential to scrutinize bills from outside law firms. A fresh approach to spending, using e-billing tools and advanced technologies like AI and machine learning (ML), can help insurance companies tackle these economic challenges and stay ahead of the competition.

Challenges with Old Spending Methods

Sticking to outdated spending methods can hinder progress. Some insurance companies rely heavily on traditional e-billing systems, which might not handle complex billing rules effectively. This can lead to unnecessary costs that hurt profits.

Moreover, some law firms still send paper invoices. While these may represent only a small part of total expenses, they limit visibility into spending and make processing slow and inefficient. This often keeps staff tied up with paperwork instead of focusing on more important tasks.

Having detailed invoice data is vital for using advanced analytics. To stay strong during tough economic times, companies need to analyze their performance quickly. Accessing industry benchmarks and internal data should be straightforward and secure, ensuring that decisions on legal spending are informed by solid data.

Optimizing Technology for Spending

To boost legal operations and strengthen financial stability, insurance firms can embrace a comprehensive approach called total spend management. This combines key e-billing tools with cutting-edge AI technology.

Key features of total spend management include:

• AI-driven bill reviews that quickly spot billing guideline violations, enhancing cost control
• AI-conversion of paper invoices to the LEDES format, promoting complete spending transparency
• Advanced analytics that support benchmarking and informed decision-making

These technologies provide a more effective way to manage costs, moving beyond just freezing rates. For instance, using AI for bill reviews can boost compliance by 20% and save costs by 10%. This improvement is particularly vital in today’s climate.

Understanding the Shift

For a deeper look at the limits of traditional spending methods and the advantages of a comprehensive approach, an eBook titled A better approach to spend management for the insurance industry offers valuable insights.

This eBook covers:

• The key challenges insurance companies face today
• The solutions that drive total spend management
• Guidance to help identify the right capabilities for your needs

Every dollar matters. Insurance claims and legal departments must avoid leaving money on the table. By utilizing robust e-billing tools alongside AI and ML, companies can enhance cost savings, operational efficiency, and compliance with billing guidelines. These tools also provide a complete picture of legal spending and its effects on outcomes and business goals.