Myth busting Claims Defence: What Really Drives Better Outcomes?

It’s easy to assume that insurers and legal partners don’t always align - or that involving lawyers adds cost and only becomes necessary when things escalate. 

In reality, effective claims defence works very differently. 

The strongest outcomes come from early collaboration, where insurers and legal experts work together to manage risk, control costs, and make informed decisions before issues develop. 

As part of our myth busting series our Claims Director, Carl Cripps, sat down with Darren Mendel, Partner at Horwich Farrelly, to challenge some of the most common industry misconceptions. 

Myth #1: “It’s cheaper not to involve a lawyer” 

One of the most common concerns is that bringing in legal support early will increase overall claim costs. 

As Carl explains: “We’ll have client meetings and they sometimes worry that we’re instructing solicitors too early.” 

But Darren challenges this assumption, highlighting the long-term benefit: “That’s not an increased cost at that stage because you are trying to safeguard against litigation - and it’s in litigation where the costs will escalate potentially.” 

Early legal involvement provides foresight - giving insurers a clearer understanding of how a claim may develop and allowing them to act before costs spiral. 

Darren reinforces this value: “Not only are you potentially saving on the damages, but you’re definitely saving on the costs.” 

Myth #2: “Lawyers and insurers only care about winning at trial” 

People often misunderstand success in claims defence as simply winning in court.

Carl reframes this perspective: “The winning is subjective. It’s about making sure the policyholder is happy with the final outcome.” 

Darren builds on this, broadening the definition of success beyond litigation: “Customer journey, indemnity spend control, settling a case within its reserve… all of those situations fall under the banner of winning.” 

While an outright courtroom victory is valuable, the real measure of success is achieving the right outcome for the customer and the business - efficiently and effectively. 

Myth #3: “Insurers and solicitors have different priorities” 

Many people still believe that insurers focus on cost, while solicitors prioritise legal process.

Carl brings it back to the core priority: “For us, priority is the right outcome for the policyholder, sometimes regardless of the cost.” 

Darren highlights how both sides contribute to that outcome in different but complementary ways: “There’s a personal element for the customer, an experience element from DCL, and a legal element from HF.” 

This alignment is particularly important in complex claims, where clarity and communication are critical. 

As Darren explains: “There is an ability for DCL and HF to work in tandem to allow that customer’s journey… to be fully informed.” 

Rather than working in silos, insurers and legal partners collaborate to ensure the customer understands the claim and the steps being taken to resolve it. 

Myth #4: “Lawyers are just for litigation” 

Many insurers now reject the idea that legal support only matters at the point of litigation.

Carl acknowledges litigation still has its place: “Litigation… is the last resort, although sometimes a necessary evil.” 

But both Carl and Darren emphasise the shift in industry thinking. 

Darren explains: “There has been an evolution… where insurers have realised that there is an opportunity to involve lawyers at an earlier stage with a view to avoiding litigation.” 

Carl strongly supports this proactive approach: “I’m a big supporter of getting information to our lawyers… early. Let’s get a view from another professional coming at it this from a different angle. So often, your team will add something that perhaps we’ve not thought about” 

Early collaboration allows for better decision-making, often preventing claims from escalating unnecessarily. 

Across all these myths, one thing is clear - collaboration is key. 

By bringing together claims expertise, legal insight, and a focus on customer outcomes, insurers and legal partners can: 

• Make more informed decisions earlier 

• Reduce unnecessary costs and escalation 

• Improve the overall customer journey 

Watch the full myth busting video here.