In 2024, LexisNexis^® Risk Solutions conducted a survey of 1,000 U.S. consumers to inquire whether they leveraged an attorney for their bodily injury claim. Respondents whose responses are included below experienced an auto accident within the previous two years that resulted in a third-party BI claim and comprised a mix of consumers who sustained major and minor injuries.

When a consumer is involved in an accident that results in injury, navigating the claims process can feel overwhelming. Most claimants want an easy and fast claims experience, but there are tripping points within today’s current process that can yield anything but.

In the survey, 70% of respondents hired an attorney. What's more revealing is that 15% of all respondents had no intention of seeking counsel but eventually did. New data from LexisNexis® Risk Solutions shows four specific shortcomings that drive consumers to seek legal help, even when they didn't initially plan to. Understanding these pain points is a good first step to help carriers win the race to establish claimant rapport.

Here are Four Key Factors That Push Claimants Toward Legal Representation

1. The Carrier Doesn't Make the First Contact

After an accident, the clock starts ticking. If insurance carriers fail to initiate contact with a claimant before he or she reaches out, it may set a negative tone for how the claims process may go. The survey reveals a significant gap in communication, with 71% of the group who reluctantly hire an attorney reporting they have to make the first call to the third-party carrier. Also, at first contact, attorneys earn nearly two times the complete satisfaction rate that carriers do.

2. A Negative First Impression Translates into Negative Expectations

You only get one chance to make a first impression, and this holds true in claims, also. For many claimants, the initial interaction with a carrier can influence the claimants' expectations for the rest of the claims process. We found 75% of claimants who reluctantly hire an attorney say their first contact experience with the third-party carrier negatively shapes their view of how the rest of the process will unfold.

3. Claimants Have to Repeat Their Story Multiple Times

A major source of frustration arises when claimants are forced to repeat the details of their incident multiple times. In our research, we found that 70% of claimants who later decide to turn to counsel repeat their story two or more times after the initial filing.

4. The Settlement Process Takes Too Long

Ultimately, the goal of any claim is to reach a fair settlement as quickly as possible. When this process drags, claimant dissatisfaction can skyrocket. According to the survey, 56% of claimants who hire an attorney after not planning to, do so because they are unhappy with the time it takes to reach a settlement.

The claimant’s frustration is a powerful motivator to bring in an attorney, as many claimants believe an attorney will expedite the resolution and ensure a fairer outcome.

Improving the Claims Experience is Key

The data is clear. Poor customer experience is a direct driver of attorney involvement in bodily injury claims. Consumers perceive poor communication, inefficiency and delays not as minor inconveniences, but as failures that push them toward counsel.  

Data that helps facilitate quicker contact with parties or enables a seamless information transfer could go a long way in helping carriers settle more quickly and directly with claimants.

LexisNexis^® Claims Datafill can help with that. Claims Datafill delivers data about parties, vehicles and coverages into a carrier’s claims workflow in near real-time. It verifies existing data and can help provide missing information adjusters need to keep the claim moving at FNOL and throughout the lifecycle of the claim. Seven of the top 10 insurance carriers use Claims Datafill to help them stay ahead in the claims process. 

While some attorney involvement in claims is inevitable, there’s a subset of claimants who begin working with the carriers, then turn to attorneys due to frustrations in the claims process. If carriers can eliminate that frustration and work directly with claimants, it’s a huge opportunity. 

Learn how Claims Datafill can help you improve contact times, reduce severity and accelerate claims closings.