Many insurers have years of legal billing data stored in their e-billing systems. While that data is often used to review invoices, monitor budgets, and process payments, its value extends far beyond day-to-day operations. Historical legal billing data can reveal patterns that help claims organizations better understand litigation costs. With a more complete and detailed understanding, organizations are able to evaluate defense counsel performance and optimize claims strategies, ultimately leading to better claim outcomes and lower overall costs

The challenge isn’t collecting the data—it’s knowing what questions to ask.

1. Are legal costs changing and, if so, why?

Looking at legal spend over several years can help distinguish between short-term fluctuations and long-term trends. Claims organizations can identify whether rising costs are driven by higher attorney rates, longer case durations, increased litigation complexity, or changes in staffing.

Understanding these drivers provides valuable context for budgeting and strategic planning rather than simply reacting to higher invoices.

2. Which defense attorneys consistently deliver value?

Legal spend should be evaluated alongside performance.

Historical billing data can help insurers compare defense attorneys using objective metrics such as deposition timing, medical record summarization strategies, case duration, and actual versus expected overall costs. Rather than relying solely on anecdotal experience or individual claim outcomes, organizations can identify firms that consistently provide value across their portfolios.

These insights can support panel counsel selection, strengthen relationships with high-performing firms, and highlight opportunities for improvement.

3. Where are inefficiencies hiding in your claims data?

Patterns often emerge only when data is viewed over time.

Historical billing data may reveal recurring staffing practices, billing trends, or case characteristics that contribute to higher costs. Identifying these patterns gives claims leaders the opportunity to refine litigation management practices, establish more consistent expectations, and improve oversight before costs continue to escalate.

Small operational improvements applied across hundreds or thousands of claims can have a meaningful impact over time.

4. Can historical trends in legal billing data improve future planning?

Past performance can be one of the strongest indicators of future outcomes.

Analyzing several years of legal billing data can help organizations forecast legal spend with greater confidence, identify emerging trends earlier, and allocate resources more effectively. Historical insights also support conversations around budgeting, reserve planning, and long-term claims strategy.

Rather than relying on assumptions, claims organizations can make decisions supported by objective data.

5. Are you getting the full value from your legal billing data?

For many insurers, legal billing data represents an underused strategic asset.

When analyzed effectively, historical billing information can provide far more than a record of past expenses. It can help organizations benchmark performance, uncover trends, improve forecasting, evaluate outside counsel, and identify opportunities to manage legal spend more effectively.

The most successful claims organizations don’t just collect data—they use it to ask better questions and make more informed decisions.

Turning historical data into action for insurers

Years of legal billing data can contain valuable insights that can support smarter litigation management and stronger financial outcomes. By looking beyond individual invoices and examining long-term trends, insurers can better understand where costs are increasing, which firms are delivering value, and where opportunities exist to improve efficiency.

As legal and claims environments continue to evolve, organizations that leverage their historical data will be better positioned to make informed, data-driven decisions that support both operational performance and long-term business objectives.

Learn more

Historical legal billing data holds valuable insights—but only if organizations have the tools to analyze it effectively.

Milliman Datalytics-Defense helps insurers transform legal billing data into actionable insights through advanced analytics and benchmarking. With the ability to evaluate legal spend, benchmark defense counsel performance, identify billing trends, and support more informed litigation management decisions, organizations can turn historical data into a strategic advantage.

Learn more about Milliman Datalytics-Defense and discover how data-driven insights can help your claims organization make more informed decisions.