Improved decision making

through legal analytics

Client
Companies such as U.S. property and
casualty companies that must manage
large volumes of legal disputes.
Business case
Background
Like all corporate departments, legal groups are Results
pressured to reduce costs and operate more effi- Predicted payment in dollars for
ciently. Industries such as insurance, healthcare and expenses on a claim
financial services have agressively deployed analytics P
redicted payment in dollars
related to indemnity for a claim
and predictive models in several areas, but great

EXL improves visibility into
industry trends/costs and
forecasting capabilities by aggregating
billions of dollars of spend data.
opportunities exist to use these same tools to simplify
and improve decision making throughout the litigation
lifecycle.
The legal disputes often include several key decision
E stimated future payments right
at the on-set of legal action
E ffective handling of cases and
accurate business

Scope points for every dispute. Even though certain aspects

of cases might be unique, common patterns exist

Sophisticated decision analytics
that reveal powerful information
about legal department operations,
management, case handling and
more
In-depth data mining
Statistical modeling
Forecasting legal activity and
expenditure reserve model
development
ExlService Holdings, Inc. 2006-2015
Business Impact
that can highlight the best path forward on how
Predicted payment in dollars for
to manage disputed claims and how to optimize a
expenses on a claim
companys legal spend.
Predicted payment in dollars
related to indemnity for a claim
What industries like insurance, which must manage
Estimated future payments right
heavy volumes of disputed claims, need is a trusted
at the on-set of legal action
analytics and operations partner that can combine
Effective handling of cases and
sophisticated decision analytics, insurance, legal
accurate business decisions
and financial services experience to mine the myriad
variables available to unearth patters and map out the
best approach to claims.
Improved decision making through decision analytics
The solution
EXL combines in-depth data mining, statistical
modeling and forecasting to unravel powerful
information about legal department operations,
management, and case handing.
EXL first aggregates, cleanses and validates from
multiple sources to build its models. EXL employs a
proprietary analytics methodology that allows EXL to
create and validate predictive models more quickly
and efficiently.
EXL then is able to transform this data into informa-
tion that can help corporate legal departments find
trends that can guide them along the crucial decision
points for each dispute, such as:
Likelihood a dispute goes to litigation
Cost of litigation
Time to settle the claim
Best internal or external resource to manage the
dispute
This document has been reviewed and approved
by the content compliance team for circulation outside EXL.
For industries such as insurance the on-set of legal
activity on a claim inflates the reserve amount initially
allocated to claim. Insurance companies require the
right estimations of indemnity and expenses that
will be eventually incurred, post entry of claim into
litigation cycle. Additionally, a claim with legal activity
cost them five to ten times more than a claim without
legal activity.
The power of analytics is it provides scientific
supporting material to decisions that previously were
often made but gut feelings. Savings is realized
at every step because decisions to litigate or settle
are made quickly. Decisions on whether to manage
internally or incur the high fees of external law
groups can save millions.
Finally, through advanced operations research
algorithms, EXL has cumulatively helped its client
realize hundreds of millions of dollars through claim
operations optimization.
About EXL
The EXL Insurance and Healthcare Practice
includes a global team of over 8,800 highly-
trained professionals and specialists who
provide operations management, analytics,
finance and accounting, legal support and
technology services. EXL is a licensed third-
party administrator in all U.S. jurisdictions
and has received URAC accreditation.
Associates receive extensive industry training,
including CII, LOMA and CPCU, among
others, at our in-house insurance
and healthcare academies. EXL combines
this with more than 600 medical and legal
specialists. EXL also delivers industry- specific
platforms, including Subrosource, , the
leading third-party subrogation platform, and
LifePRO, also a leading Life and Annuity
Policy Administration system. More than 500
of the worlds leading insurance and
healthcare companies have chosen EXL.
EXLservice.com