What Contributes to Insurance Carrier Reluctance?
As most New Jersey personal injury lawyers will attest, the insurance industry has become starkly conservative over the past few years, both in offers to settle and willingness to engage in productive negotiations. There are a number of factors contributing to these issues, including the economic climate and increases in claims. Understanding the root causes of insurance carrier unreasonableness can be a surefire way to overcome unwillingness to negotiate and help clients obtain a fair and reasonable compensation for their injuries.
Reasons for the conservator approach could include the following:
Advertising: Increased late-night, loud-mouthed personal injury lawyer advertising has undoubtedly hurt the reputation of personal injury lawyers and damaged the overall public persona of this respectable profession. One theory held by insurance providers is that it may be advantageous to submit the personal injury claim to a jury, who has undoubtedly witnessed these ads and may have little compassion for the personal injury client. However, your New Jersey personal injury lawyers will easily overcome this stereotype through the professionalism and integrity that comes naturally with the practice of law.
Increased claims: Small and medium-sized insurance claims are on the rise, and many believe it is due to the increase in lawyer advertising and public awareness. Insurers are then required, due to financial restraints, to “hold the line” by offering miniscule settlement amounts or refusing to negotiate altogether.
Jury reaction: Some insurance carriers rely on the likelihood of a small jury verdict in a small to medium-sized personal injury case. Recent data has revealed a trend toward very low verdicts well short of the plaintiff’s original settlement request. Carriers are eager to play these odds in order to end up paying a claim much lower than originally contemplated.
- Increase in defense attorneys: The increase of insurance defense attorneys and plaintiff’s personal injury attorneys may be due to changes in workers’ compensation laws. This has led to many firms having to place bids for insurance defense work, and carriers can afford legal representation at a fraction of what it once cost to litigate claims.
Working with personal injury lawyers
The New Jersey personal injury lawyers at the Clark Law Firm, PC offer honest, zealous representation and do not engage in deceptive tactics to win for clients. If you are interested in speaking to us about your personal injury case, call (732) 443-0333 today.