What must claims employees be knowledgeable about regarding settlements?

Claims employees must be knowledgeable about anticipating and preparing for litigation because understanding the potential for legal action is crucial in the claims process. This preparation allows claims adjusters to develop a comprehensive approach to handling claims, ensuring that they can effectively negotiate settlements and mitigate risks associated with litigation.

Being well-versed in the litigation landscape helps claims employees assess the strengths and weaknesses of a claim, which in turn influences their settlement strategy. They must consider various factors, including the likelihood of a lawsuit, the potential costs involved, and the implications of a settlement versus pursuing the matter in court. This proactive approach not only aids in achieving fair settlements but also protects the interests of their organization and clients.

Other options do not support the necessary knowledge base for claims employees. Solely focusing on global economic factors, settling claims without preparation, or overlooking complications would hinder the ability to navigate the complexities of claims effectively.