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(From Reinsurance)
Electronic paper trails created by email could be putting (re)insurers at risk of costly claims litigation, according to a speaker at a recent market briefing hosted by the International Underwriting Association.
Dennis Wade, a founding partner of insurance law firm Wade Clark Mulcahy, claimed that email is the "Achilles heel of insurance contract litigation."
He said that in the past conversations would have been conducted by phone, fax or face-to-face. However, the arrival of email allowed routine discussions with loss adjusters and other business partners that could create a permanent record of informal comments which could be used later if a claim becomes a part of a legal action.
In the event of a dispute over a claim, these email records could then provide a massive amount of information that would not ...