When we explored the findings of our annual global Claims Insights survey for 2025, which 200 carriers responded to across North America, the United Kingdom, Australia and New Zealand, it became clear that concern around the impact of legacy claims has reached new heights and emerged as one of the major challenges on carriers’ minds for 2025.
So much so that an entire section in the Cost Strategies chapter of our annual whitepaper, The Carrier Perspective: 2025 Claims Insights, which was released last month, has been dedicated to their management.
The numbers speak for themselves, with 76% of carriers across the globe reporting that legacy claims posed a challenge to organizational profitability and efficiency. This is a 14-percentage point increase from the previous reporting year.
Legacy claims in casualty lines are of particular concern to North American, with 71% of carriers pinpointing them as a key challenge.
Legacy claims are not a new obstacle; they are a persistent problem that requires dedicated expertise and the right tools to manage successfully. This is why an increasing number of carriers are turning to outsourcing to enhance legacy claims management, improve data management efficiency, and integrate systems more effectively.
One of the main challenges carriers face with legacy claims is being locked into outdated claims systems that are difficult to integrate with modern claims technology that has the potential to settle claims more efficiently.
By leveraging advanced data analytics, carriers can gain data-driven insights into legacy claims, identifying hidden patterns and emerging risks. This empowers carriers to make informed decisions, optimize workflows, and proactively address challenges unique to legacy claims. Moreover, access to performance benchmarking metrics allows carriers to set realistic performance goals, monitor progress, and align strategies with industry best practices. This fosters a culture of sustainable excellence and elevates the overall efficiency and effectiveness of legacy claim portfolio management.
This is where leveraging the support of a claims and risk management partner who specializes in legacy claims solutions can play an invaluable role. Gallagher Bassett’s Legacy Practice Group has a dedicated Implementation Team that is specially trained to transfer files trapped in outdated systems while also developing tailored solutions for your legacy claims portfolio.
Furthermore, as legacy portfolios begin to close out, leveraging the value of a strategic partner and award-winning technologies, like our RMIS suite, Luminos, becomes even more important to identify and unlock growth opportunities.
Our survey results also revealed that 54% of survey respondents globally reported litigated claims settling at higher costs, and North American carriers marked a 10-percentage point increase in these claims closing at a higher cost. With rising costs such these, it is more important than ever for carriers to deal with longtail exposures to prevent them from compounding, freeing up capital and talent to work on live programs that will drive your business forward.
Read the third annual edition of our whitepaper, The Carrier Perspective: 2025 Claims Insights today to discover how to tackle the increasingly challenging market carriers are facing in 2025. From social inflation to business interruption and talent shortages, The Carrier Perspective is an essential resource for carriers looking for solutions to navigate the year ahead.
Learn more about how our dedicated Legacy Practice Group can help you harness the power of cutting-edge claims technology and spearhead strategic solutions for legacy portfolios to achieve superior outcomes.
