Is There An Average Settlement Figure?
A settlement could come at the end of period of negotiations. That end figure is one of 2 that are of significance during any effort that aims to aid creation of a negotiated settlement. The second figure is the one used at the start of the negotiations.
Both of the disputing parties have some control over the number that gets presented at the start of negotiations.
An injured victim would be acting wisely, if he or she chose to send a demand letter to the adjuster. That would let the adjuster know what sort of bid the letter writer (the victim) would hope to receive.
The adjuster could respond by indicating the ways that the victim’s argument appeared too weak, when compared with the size of the demand. Some adjusters prefer to respond to any demand with a low-ball figure. In that case, the claimant/victim would need to ask for an explanation. Why had the adjuster’s opening bid been so low?
Guidance for victims makes it hard to identify an average settlement figure.
The online guidance suggests formation in the mind of a minimum acceptable offer. Obviously, the different victims do not come up with the same figure. Yet that minimum amount has a strong influence over the size of the settlement figure. In other words, the size of the various settlements would reflect the number in the minds of the different victims.
There are medians posted online.
Each median gives the middle range for a sample of the figures agreed to at the time of various settlements. The median is not an average. Moreover, there is no mention of the sample size, or of the defendants’ assets, or of the size of the victims’ losses. Furthermore, there is no mention of how liability was determined, or of any actions that could have weakened a specific victim’s case, such as a failure to mitigate the effects of an injury, as per Personal Injury Lawyer in Nepean.
Both a median and an average become more meaningful when shared in combination with significant facts, such as the sample size. When dealing with an average for several settlements, it would also help to know how familiar each of the victims had been with the claims process. It would also help to know what experience each of them had with the act of negotiating an agreement/settlement.
In light of all the factors that work to determine the amount agreed upon by the negotiating parties, it would be difficult to arrive at a meaningful average. An injured victim’s chances for obtaining a fair settlement could increase following an effort to understand those same factors. On the other hand, it would not increase following the identification of some sort of average quantity.