Demand letters from claimants’ attorneys are very challenging to identify because of their complex legal verbiage as well as the sheer volume of documents received by claims teams every day. If missed and not accurately monitored, a demand could lead to bad faith exposure and/or extra-contractual liability, besides exorbitant defense costs. Cogitate Demand Management solution uses modern technologies like text mining, optical character recognition (OCR), artificial intelligence (AI) and machine learning (ML) to automate the entire demand letter identification and management process. It helps in tracking the progress of the demand and negotiations with attorneys.
Insurance companies receive thousands of documents every day, which generally include demand letters from claimants’ attorneys. The impact of missing even a single demand letter can be catastrophic for any insurance provider, as it may result in bad faith and millions of dollars in settlement costs. Cogitate Demand Management automates the identification of demand letters and notifies the relevant stakeholders every time a new demand letter is received by the insurer’s claims team. It offers an extra layer of protection against possible fraudulent claims turning into unnecessary legal proceedings.
Automating the identification and monitoring of demand letters allows insurance carriers, MGAs and wholesale brokers to significantly reduce the risk of turning any attorney demands into bad faith claims and subsequent litigation. Additionally, Cogitate Demand Management solution keeps track of all important dates, such as the expiration date for the demand, the offers made in negotiations and the settlement date with the claimant’s attorney, and helps in keeping an already exorbitant settlement cost from unnecessarily running into millions of dollars.
“Cogitate Demand Management solution has so many features and benefits. We have significantly enhanced control over attorney demand claims exposure with this software. Demand Management solution helps us to ensure that no demand or a subsequent deadline is missed which can lead to bad faith. This is truly ‘sleep insurance’ for me when it comes to attorney demand letters. It’s an incredibly valuable tool for me as the Claims Vice President.”
Cogitate Demand Management uses artificial intelligence coupled with modern technologies like OCR, text mining and machine learning to automatically identify potentially high-risk demand letters. This automation replaces the labor-intensive and error-prone manual process. The system rapidly scans through thousands of documents to search for attorney demand letters without any user intervention.
Cogitate Demand Management uses built-in notifications and a configurable email alert mechanism to ensure that all demand letters are responded to in a timely manner. The tool will also track negotiation details with attorneys, such as offer amounts and the dates on which the offers were presented.