Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Deborah Masucci at Trust Mediation & Expedite Resolution

553 views

Published on

Deborah Masucci, Chair of the Board of the International Mediation Institute and former VP at AIG, describers her personal experience of bringing mediation and ADR to the fore in dispute resolution. The presentation was in London in October 2014 to an invited audience hosted by Trust Mediation and Expedite Resolution, two leading UK based mediation providers.

Published in: Law
  • Be the first to comment

  • Be the first to like this

Deborah Masucci at Trust Mediation & Expedite Resolution

  1. 1. Landscape of Settlement  ADR in the Insurance Industry  Deborah Masucci
  2. 2. The content of this presentation represents the personal reflections of Deborah Masucci regarding her experience in the insurance industry. Deborah is not expressing or representing the views of AIG.
  3. 3. Goals for Today’s Discussion  Insurance Industry Use of ADR  Why is ADR so popular in the Insurance Industry  ADR at AIG
  4. 4. Insurance Industry is the Largest Consumer of ADR Services  Disaster Recovery  Coverage Disputes  Collectively Bargained ADR (Workers Comp)  Subrogation (loss shifting)  Reinsurance  Corporate Litigation  Employee Dispute Resolution
  5. 5. Goal of the Insurance Professional  Close a file at the right price  Negotiate for the best results  Retain insured as customer  Manage cost per file
  6. 6. Why ADR?  Alternate to Litigation  80-90% of all lawsuits settle through ADR  Applies across all business lines
  7. 7. Why Should Companies Use ADR  Control Legal Spend  Decrease Claim Duration  Indemnity Savings  Control Over Process and Outcome  Avoid Class Actions
  8. 8. Studies Show ADR Works  Resolution 2½ years earlier  $114,000 savings per claim  $670,000 savings for severe injury claims  $32,000 savings from lower legal expenses  $211,000 savings on legal expenses for severe injury cases
  9. 9. 2011 Cornell, CPR, Pepperdine Study on Corporate Use of ADR  Shift to appropriate dispute resolution and away from default away from litigation  ADR expanded to include open door policies and partnering on construction projects  Move away from always litigate to litigate when appropriate, otherwise use ADR  75% ADR triggered by contract; 71% triggered by corporate policy to save time and money
  10. 10. ADR at AIG  Established Office of Dispute Resolution in 2003  Collect data on mediators and arbitrators  Provide ADR training  Provide information and analysis regarding ADR  Consulted with Businesses
  11. 11. Office of Dispute Resolution  Mission:  Provide Strategic and Tactical support to use ADR more strategically and effectively within the claims resolution process to reduce legal expenses and indemnity payout  Provide Resources and Training  Identify and Implement Strategies to Use ADR More Effectively  Support Negotiation by Claims Professionals
  12. 12. Mediator Effectiveness  Prepared  Organized  Neutral  Actively Worked With the Parties  Strong Negotiating Skills  Reality Testing  Advocate for Settlement Post Mediation
  13. 13. Training Programs  Purpose of Training  Increase Awareness  Strategic Focus  Special Skills  New ADR Horizons  Elevate Expectations  Types of Training  ADR Training Modules  Mediate to Advantage  WebBased  Mediation Advocacy
  14. 14. ADR Training Modules:  Training modules make it possible to learn all of this in enjoyable, practical short sessions…  THE LANDSCAPE OF SETTLEMENT  BASICS OF MEDIATION  BASICS OF GOOD INSURANCE NEGOTIATION AND SETTLEMENT  PSYCHOLOGY OF EVALUATION  ADVANCED NEGOTIATION FOR EXPERIENCED PROFESSIONALS  DEALING WITH DIFFICULT SITUATIONS  PSYCHOLOGY OF PERSUASION  RISK ANALYSIS  APPROACHES TO NEGOTIATION: COOPERATION AND COMPETITION  ADR TOOLS TO RESOLVE INSURANCE CLAIMS
  15. 15. ADR Resources  ADR page to Litigation Management Website  ADR Audit Questionnaire  Keep apprised of case law or statutes  Florida requirement to affirm settlement authority  Specialized Programs  Arbitration Forums  Hurricane Dispute Resolution Programs  Kansas Alternative Mediation Program  List of Florida Insurance Approved Mediators
  16. 16. ADR Advantages Insureds  Preserve relationships  Shorten duration file is open  Allow parties to control process and settlement  Manage premiums
  17. 17. Questions? Mediation is best used strategically when the parties have sufficient information to evaluate and assess the settlement value
  18. 18. Deborah Masucci Masucci Dispute Management and Resolution Services Arbitrator, Mediator and Counsel dm@debmasucciadr.com Chair of the Board for the International Mediation Institute Deborah.masucci@imimediation.org

×