Figure 3: The detailed process for SIR and deductible tracking
E&O claims
E&O claims are also being brought against third party (claims) administrators (TPAs), wherein claim-file mishandling is being alleged by the insurance carrier or in some cases the insured, where a large deductible is involved in settling the case/claim.
Offsetting risk and exposure Technologies and other tools have been designed and are available
to assist in the tracking of SIRs, in order that proper and full exhaustion or erosion may be proven and demonstrated to have been managed in accordance with the terms of the insurance policy.
These tools will provide for the application of current litigation and
legal spend management protocols to be applied from dollar one, thus protecting the needs of the insured, as well as satisfying the requirements of the insurance carrier, under the policy.
They also lend themselves to tracking the deductible or early claims costs, in order that the insurance carrier can make better informed decisions over settlement and resolution of the claim.
Transparency is the key By utilising workflow technology and electronic matter management,
SIR and deductibles can be tracked from the first dollar. The data from this process provide transparency on the effectiveness of the claims adjusting/handling and reduce ambiguity over coverage.
What is meant by ‘e-billing’?
The vast majority of fee-paying clients operate using paper- based invoice submission, review, approval and payment processing systems. However, the final step in accounts payable is typically electronic.
That leaves a large disconnect between service providers who are submitting bills and aiming to generate a faster turn-around and improved cash-flow, and their clients’ ability to process invoices quickly via internal business processes and management authorisation.
In the context of the corporate legal market, e-billing has been in use
for around 20 years. The legal electronic data exchange standards (LEDES) have become the de facto format for the e-billing process. Time and billing software vendors supporting their service provider clients have created LEDES tools, plus the growing litigation vendor marketplace (where Legal Service Group operates), has similarly led the way forward.
Legal services providers (LSPs) across the globe utilise various time, billing and accounting practice management software systems, based on non-compatible platforms, collecting varying and inconsistent sets of billing data. For the client, the submission of multiple invoice formats presents serious data collection and interpretation issues. Generating reports on a basis of expenses per case, per service provider, for example, is made that much more difficult.
An e-billing methodology which uses a common, industry-wide standard such as LEDES helps to overcome most of these hurdles. The ability to submit invoices electronically also offers the client and the LSP the means to transact globally, with very low operational costs.
The benefits of adopting an e-billing software system are well documented, and include the ability to collect data consistently and correctly. Removal of duplicate invoices, duplicate billed entries, mathematical errors, hourly/other rate checks, and validations being done automatically are other benefits of a system which, implemented correctly, will generate an overall cost saving.
Managing a paper-based system is expensive, slow, hard to
measure or audit, and harmful to the environment. Plus it’s open to significant human error due to interpretation, re-keying manually on to a PC, and an inability to ensure compliance versus client billing guidelines.
What are the barriers to moving from paper to e-billing? The general answer is ‘there aren’t any’. It’s now possible to set
up a local, national and/or global e-billing solution for a client and all its divisions anywhere Internet access is available. This is due to the
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