Strategies for enduring the financial haymakers of a nuclear verdict
Attendees at the 2024 Complex Claims and Litigation Forum learned why organizational adaptability is critical when navigating intricate insurance disputes.
Mike Tyson did a lot more damage with his fists than his lips during his legendary boxing career. That didn’t stop Allstate’s Ruben Pinto from borrowing a famous quote from the former heavyweight champion as he launched his keynote address on the second day of the 2024 Complex Claims and Litigation Forum in Las Vegas.
“Mike Tyson once said, ‘Everyone has a plan until you get punched in the face,’” said Pinto, the director of large loss casualty. “Well, in complex claims, it seems like you get punched in the face pretty frequently.”
The quip drew an acknowledging laugh from those who attended Tuesday’s session at Green Valley Ranch Resort. No, not because many of Tyson’s biggest fights took place just a few miles away on the Las Vegas Strip.
Rather, Pinto’s witty opening remark resonated because the crowd was keenly aware of the financial haymakers that have landed squarely on the jaw of the insurance industry in recent years.
In fact, Pinto immediately pivoted to some startling statistics to support his punching-bag analogy. For instance, a recent ALM-published study revealed that median nuclear verdicts against corporate defendants in the U.S. nearly doubled in just two years — from $21.5 million in 2020 to $41.5 million in 2022.
From there, Pinto drew on professional anecdotes to convey numerous strategies he believes individual companies should consider adopting — not only to help avoid crippling financial losses but also to better streamline organizational operations.
A complex claim by any other name?
Pinto’s first piece of advice: Establish a clear definition of what a complex claim is — because there is no one-size-fits-all definition — then develop a path and a timeline for resolving such claims.
“It’s important to know that a complex claim starts like any other claim,” Pinto said. “There’s a determination of coverage, liability and damage. In other words, is there coverage? Am I liable? And what’s it worth?”
He explained that once Allstate discovers a claim will take on multitudes of complexity, the file is moved to the right person or team to make sure there is proper oversight and to offer the highest chances of a successful resolution.
Of course, getting from the starting blocks to the finish line in the high-stakes world of complex claims and litigation is often long and arduous. And no two races are alike.
That’s why Pinto advises firms to not only develop their own structure and culture but constantly reevaluate both to ensure that processes are constantly evolving.
Pinto’s other tips for long-term success: Establish role clarity within the entire organization; empower teams to be involved in decision making, which in turn leads to accountability; and commit to staying the course even in the face of a negative outcome.
“Nobody wants to have their name associated with a nuclear verdict — not the adjuster, not the team manager, not the director, not the vice president,” Pinto said. “So it’s important that when things go south that we reinforce desired behaviors.
“We must always be students of the industry and build in time to review and learn from claims that have resolved [negatively], then focus on modifying our processes and our training accordingly.”
Matt Jacob is a Las Vegas-area freelance journalist.
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