Claim Value
The expected recovery on an individual claim, discounted for risk and cost.
In a mass inventory, per-claim value is typically modest and highly uniform, which is what permits matrix-style resolution. The gap between per-claim value and per-claim administrative cost is the arbitrage that drives the entire practice.
See also
- Cost-of-Defence SettlementSettlement priced by the cost of resisting rather than the merits of the claim.
- Settlement MatrixThe formula assigning settlement values to claims by injury severity and other objective factors.
- Negative-Value ClaimA claim worth less than the cost of pursuing it individually.
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