A Mediator’s Guide to Claims Reserves in the Insurance Industry

Mediators may encounter a reluctance to settle by one or both parties during the course of a mediation session, but understanding the underlying realities of each party’s position may help break logjams.

All stakeholders must understand all the factors that might pose either an opportunity for or an impediment to settlement.

Plaintiffs may overestimate the value of their claims and/or the defendants’ liability exposure. Correspondingly, defendants may undervalue the claim and/or their exposure.

Due to many courts being closed during the pandemic, plaintiffs and defendants alike may believe that it will take years for their case to reach a jury.

The backlog of criminal cases, along with the substantial backlog of civil cases already set for trial but continued for the past year or more, is compelling evidence that civil jury trials may be significantly delayed.

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