Settlement benchmarking analyzes prior resolutions with comparable injury severity, liability posture, venue, and claimant characteristics to establish a valuation range.
Internal claim data is generally more reliable than public sources because settlements are rarely reported publicly.
Alternative Names:
Settlement Comparables, Resolution Benchmarking
Why it Matters?
Because settlements are largely unreported, an organization's own claim history is usually the best available benchmark, which makes internal data quality a direct input to valuation accuracy. Carriers with structured historical data can set authority against evidence rather than adjuster intuition. The gap between organizations that capture resolution data systematically and those that do not is one of the clearest advantages in claims operations.
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Frequently asked questions
Why is internal data better than public sources?
What characteristics drive comparability?
