The 24-Hour Window: The Race to Keep Claims Out of Litigation

By Tom Rasmussen, VP of Product for Claims at Carpe. Originally published by Carrier Management on June 29, 2026.

In insurance, the first 24 hours after a claim is filed are often the most important. It is the carrier's best opportunity to make a strong first impression, establish trust and help policyholders understand what comes next during a period of uncertainty. It is also a critical window to reach claimants before confusion, frustration or attorney influence changes the direction of the claim.

When carriers engage quickly, the benefits extend far beyond that initial conversation. Early contact can shorten claim cycles and reduce the likelihood that issues escalate into costly disputes or litigation.

Yet while most claims organizations recognize the importance of speed, few consistently deliver fast enough to reach claimants before attorneys do.

You never get a second chance to make a first impression

To understand the importance of that first interaction, let's start by considering the claimant's perspective.

They've just experienced a loss. They're likely upset, overwhelmed, may be unaccustomed to how the claims process works and uncertain about what happens next. At that moment, all they want is to know that someone is there to acknowledge their situation, explain what to expect and guide them through a period of uncertainty. But when that support doesn't come quickly, the silence is perceived as indifference and they start looking elsewhere.

Compounding this, carriers are competing against a plaintiff advertising ecosystem that's faster, more targeted and better resourced than most claims operations. Attorneys have increasingly adopted AI-powered marketing and outreach tools that help them identify and engage potential claimants quickly, often reaching them while carriers are stuck working through intake and assignment processes.

While this has always been something carriers have felt and known anecdotally, data from a LexisNexis Risk Solutions survey of 1,000 consumers injured in auto accidents found that 15% of claimants surveyed who hired attorneys said they had no initial intention of doing so when they first submitted the claim. What's more: 61% said the other driver's carrier did something to drive them to that decision. These findings demonstrate the importance of that first impression and the downstream consequences that follow when carriers miss their window of opportunity.

What happens after the 24-hour window closes

Once legal counsel enters the picture, the dynamics change quickly. By law, the carrier can no longer speak with the claimant directly. Every exchange must be routed through their attorney. Hedge funds or private equity firms may get involved, seeking out an opportunity to bankroll a plaintiff's lawsuit in exchange for a cut of the payout. And without the financial pressure that once pushed a claimant toward early settlement, cases that could have been resolved in days or weeks stretch out into months or years.

Extended timelines also mean more hours and more money. Alongside typical attorney fees, claimants represented by attorneys are more likely to seek medical intervention and lean on the healthcare system at rates that exceed what injury severity alone would suggest.

Individual claims become industry costs

While these outcomes affect individual claimants and carriers, their impact is magnified when repeated across thousands of claims and feeds a system-wide issue.

The pressure is building from both sides. Externally, the legal environment has shifted. Larger jury awards are becoming more common, and plaintiff attorneys are becoming increasingly aggressive. In 2024 alone, there were 135 nuclear verdicts, jury awards exceeding $10 million, totaling $31.3 billion. The threat of a nuclear verdict alone is often enough to give plaintiff attorneys the upper hand during settlement negotiations.

Internally, many claims teams are still operating on legacy platforms, with siloed data and free-form text fields, making it difficult to access basic contact information such as phone numbers and email addresses. They're also running lean while trying to manage a growing volume of claims.

Control what you can control

Unfortunately, the reality is that these challenges aren't going away. If anything, the legal environment and competitive pressures facing carriers are becoming more intense. But there are still some key areas where claims teams can focus their efforts to take back control of the first 24 hours, make a positive first impression and avoid unnecessary litigation to keep costs down for everyone:

First, fix the data problem. Far too often, adjusters go to contact the claimant and are unable to find a phone number or email address. Having a sense of urgency and all the best intentions aren't useful if you don't have the necessary information to contact the claimant. Claims teams should verify phone numbers at FNOL or add alerts when contact data is incomplete.

Second, equip adjusters with the information they need before making contact. Use data and AI to improve decision-making at first notice of loss. Every claimant deserves timely contact, but not every claim arrives with the same level of complexity or risk. By combining internal claim information with external data sources at first notice of loss, carriers can provide adjusters with a more complete view of the claim before the first conversation takes place. This enables faster verification of contact information, better preparation for claimant outreach and earlier identification of claims that may require specialized handling, all while supporting the broader goal of reaching every claimant within the first 24 hours.

Third, make time to first contact (TTFC) a key performance metric. Everyone knows that if you can't measure it, you can't manage it. Managers should benchmark TTFC, set actionable, achievable goals for improvement and review them in performance conversations.

Where the industry goes from here

The 24-hour window is not a new concept, but the stakes are rising. The litigation system is advancing more rapidly than most claims operations, nuclear verdicts are altering settlement dynamics and data shows that many claimants who hire attorneys did not initially intend to do so. They were driven by a negative experience in the critical early hours.

The carriers that make a concerted effort to close this gap will resolve claims faster and at lower cost. They will also build the kind of claimant relationships that interrupt the escalation cycle before it begins, ultimately reducing litigation exposure and keeping costs down for policyholders across the book.

In an environment where so many variables are working against the carrier, the first phone call remains one of the few within their direct control.