Lloyd’s Is Digitizing — But Litigation’s Still Waiting for Its Invite
PART 3
Why Ignoring Defense Management in Digital Strategy Costs Carriers
A personal take from Rebecca Side,
Director of Sales at ClaimDeck
Missed Part 1 & 2? Start with Ahead of the Curve: Plugging the Litigation Gap in Blueprint Two for the full context.
Blueprint Two is giving the London Market the digital makeover it desperately needed. Policies placed via API? Check. Bordereaux wrangled into submission? Yes, please.
Even AI is showing up in the underwriting and claims departments — according to the LMA’s April 2025 survey, over a third of firms are actively using it for things like data extraction and submission prep.
But as someone who’s worked in and around claims for over two decades, I can tell you — litigation didn’t get the memo.
We're still managing millions in exposure via PDFs, email chains, and billing practices that make you long for the days of fax machines. Somewhere between digital triage and AI underwriting, litigation got left behind. Again.
It’s the classic assumption:
“Litigation’s niche. It’s complex. Let’s sort the rest out first.”
Here’s the thing: that assumption could cost the market billions.
And yes, you guys have got receipts.
The Hidden Cost of Unmanaged Litigation
We’re not just talking about some rounding error.
In our 2024 CLM Defense Counsel Study, we found:
Litigation accounts for 30–50% of total claim cost in many casualty portfolios
48% of that cost comes from miscommunication and administrative lag — not legal complexity
On average, litigated cases extend claim life by 204 days compared to non-litigated ones
Think about that: six months of extra indemnity, extra spend, and a frustrated adjuster waiting for someone — anyone — to reply to their follow-up email from three Tuesdays ago.
As Warren Buffett once said:
“Risk comes from not knowing what you’re doing.”
And nothing says "we're not really sure what's going on" like trying to manage litigation in Outlook folders.
AI Needs Clean Data — Litigation Needs a System
One of the top barriers to AI adoption, per the LMA’s report, is data quality and availability — cited by 49% of respondents. In litigation, that issue is basically on steroids.
We’re still dealing with:
Free-text billing narratives
No consistent outcome tracking
Attorney performance monitored via vibes and Excel
This challenge was also painfully clear in our Bridging the Communication Gap Study, co-authored with Fell Consulting:
72% of adjusters felt “in the dark” once litigation began
61% of attorneys said they weren’t given clear resolution strategies
That’s not just a workflow problem. That’s a strategic blindspot.
From Black Box to Strategic Asset
So what do we do?
At ClaimDeck, we’ve built a platform that doesn't just track litigation — it transforms how it works. Here's how:
Structured data on every legal action and billing line
Claim Score to measure attorney compliance in real time
Workflow automation and collaboration tools to actually get things done
In short: We help the litigation phase behave like the rest of your claims ecosystem.
Transparent. Structured. Accountable.
Because if AI is the future, litigation data needs to be part of the fuel. Otherwise, you're building a rocket — and leaving the engine out.
Don’t Let Litigation Be the Last One to Get Dressed
Look, I get it. It's tempting to leave litigation to the end. It's messy. It's expensive. It bites back. But if we're serious about full-cycle claims transformation, we can't keep pretending that defense management doesn't belong in the digital conversation.
“If you think good litigation oversight is expensive, try not having it.” – Me, probably after my third coffee in a ClaimDeck demo.
The smartest market participants — like the ones already experimenting with AI — know that the next digital frontier is behavior, not just data. And litigation is where both are long overdue for a makeover.
Ready to Extend Blueprint Two (and Your AI Strategy) Into Litigation?
We’re already helping forward-thinking carriers and TPAs turn litigation from a cost centre into a controlled, strategic function. It’s not about replacing your systems. It’s about connecting the dots you’re already drawing.
Want to see what that looks like? Let’s talk.
See ClaimDeck in action!
ClaimDeck™ eliminates claims litigation leakage for carriers while driving process into the law firm, modernizing the litigation process.
Follow ClaimDeck and Rebecca Side on LinkedIn.
