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Tag Archives: AFAs

P&C Insurance Carriers Favor Flat Fees; Not All AFAs Apply

P&C Insurance Carriers Favor Flat Fees; Not All AFAs Apply

Property & Casualty (P&C) carrier legal and claims departments prefer using flat fee-based alternative fee arrangements (AFA) over any other type of alternative billing method, says a new survey, the third in a series conducted by the LexisNexis® CounselLink® team. Eighty-two percent of P&C carrier legal and claims departments say flat fee AFAs are most effective in terms of helping ... Read More »

Study: AFAs Proliferate for P&C legal matters

Study AFAs Proliferate in P&C Claims and Law Departments

Alternative fee arrangements (AFAs) use is rising among property and casualty (P&C) insurance carrier legal and claims departments, according a new survey, the third such survey in a series, by the LexisNexis® CounselLink® team. The use of AFAs moved up from 69 percent in August 2015, to healthy 76.9 percent. In other words, nearly 80 percent of this segment of ... Read More »

Big Data: Steady but Subtle Increase in AFAs Use

Big Data Steady but Subtle Increase in AFAs Use

Subtle but steady – that’s what the data has to say about alternative fee arrangements (AFAs) – according to our own Kris Satkunas writing for InsideCounsel: AFAs rising: Data shows subtle but steady increase in non-traditional billing. The study reveals the overall number of legal departments actively engaging in AFAs grew sharply, to the tune of 76 percent, up from ... Read More »

History and Origin of the Billable Hour

History and Origin of the Billable Hour

The billable hour is a persistent topic, arguably because it’s so central to the business of law and indeed the larger business community. While there is strong case to suggest alternative fee arrangements (AFAs) have sustainable traction there’s also evidence that significant current trends in legal pricing are based in some part on the billable hour. The billable hour persists, as ... Read More »

A Cheat Sheet for 5 Recent Legal Industry Studies

A Cheat Sheet for 5 Recent Legal Industry Studies

The volume of digital information created everyday is eight times greater than that in all U.S. libraries.  It’s daunting to say the least and the legal industry too produces an impressive volume in the form of data, surveys and reports. Over the last few weeks, there have been a flurry of legal industry studies published, and while we haven’t gotten ... Read More »

Insurance Best Practice: How to Implement AFAs in Phases

Insurance Best Practice How to Implement AFAs in Phases

According to data from the latest Enterprise Legal Management Trends Report, the insurance industry experiences the lowest volatility in legal fees.  The report notes “volatility is a calculated indicator of blended rate variability.  Higher numbers suggest a better opportunity to negotiate rates and or the assigned time keeper mix.” On this graph, the vertical markets of “Regulatory & Compliance” and ... Read More »

AFAs:  A Budget with Consequences

AFAs A Budget with Consequences

Over the span of a decade, one company says it more than tripled its revenue while cutting its legal spend by a little more than 30%, while only adding four more in-house attorneys over four years. That seems to be a prime example of a corporate legal department doing more with less – and AFAs seem to be a key ... Read More »

10 Authentic Tips for implementing AFAs in Legal Billing

10 Legitimate Tips for implementing AFAs in Legal Billing

The alternative fee arrangement or AFA, is one of those recurring trending topics in the legal industry.  It ebbs and flows with arguments on all sides – for, against and undecided. Just ahead of the American Lawyer big law rankings, an article in the Washington Post, which is cited below, made the rounds in news, blogs and social media. We ... Read More »

Infographic Friday: The Case Against Billable Hours

AFAs increase firm size decrease

Data suggests that smaller firms are more inclined to structure alternative fee arrangements (AFA) than larger firms.  However, as so often in law, such assertions –  even data driven assertions – are not always so cut and dry.  Whether that’s true or not might be better answered by saying, “It depends.” It does depend. The graphic below the headline on this ... Read More »

Four Reasons Why Alternative Fees are here to Stay

As we can see from search trends, AFAs spiked dramatically in 2008 and have remained high.

As we can see from search trends, AFAs spiked dramatically in 2008 and have remained high. When Law Technology News Editor-in-Chief Monica Bay took the stage at ILTA to run a Q&A following Tuesday’s key note presentation she made a reference to alternative fee arrangements: She’s been forecasting the rise of AFAs for 15 years and while AFAs are certainly ... Read More »