Artificial intelligence (AI) could help professional firms to decide whether to take future disputes to court or to settle. National insurance law firm BLM has partnered with the London School of Economics (LSE) in a two-year project to create models that predict the cost, length and outcome of litigation.
BLM believes that the huge volume of case data held by insurers and others can be exploited using data analytics and AI. The project aims to develop models that can predict the outcome of low value, high volume disputes as well as larger and more complex claims.
“At the start of the dispute, you have a bit of information about the case, but there is lots of information you don’t yet know. You still have to make a decision about whether or not to invest in the litigation,” said Andrew Dunkley, head of analytics at BLM.
Three professors at the LSE will work with BLM on the jointly funded project. The LSE team includes Professor Henry Wynn, head of the decision support and risk group, Professor Pauline Barrieu, head of LSE’s statistics department and Professor Milan Vojnovic, chair in data science and expert on machine learning.
“Taking legal action to settle a professional indemnity dispute is expensive and time consuming. It also takes senior members of professional firms’ focus off delivering services to their other clients which can be commercially damaging.” said James Burgoyne, Director – Claims & Technical, Brunel Professions. “In the future we are likely to have far better predictive models that can help professionals, their insurers and solicitors decide whether to settle quickly or fight a dispute through the courts.”
Brunel provides expert professional indemnity insurance broking services to professional firms. Visit our website to find out more, or call Jonathan Filer on +44 (0)117 325 0752.