Anchoring in Insurance Defense: Why the First Move Matters

We recently spoke with a claims executive at a major insurance carrier who had just wrapped up a mediation. The tone was celebratory, they’d reached a settlement and avoided the costs and risks of trial. When we asked if they were satisfied with the settlement amount, they responded enthusiastically: “Absolutely! It came in at less than 50% of the plaintiff’s original demand.”

That comment stuck with us.

Why? Because it illustrates something every negotiator knows intuitively: anchoring works.

Anchoring is the psychological principle that the first number put on the table heavily influences the rest of the negotiation. It doesn’t matter if the number is fair or even realistic; it acts as a mental benchmark. In the case above, the plaintiff’s demand set the tone. So even though the carrier ultimately paid far less than the demand, the negotiation still played out within a framework defined by the other side.

Insurance defense teams are excellent at valuing cases. They bring years of experience, legal insight, and a deep understanding of venue dynamics to the table. But valuation alone isn’t leverage. The power to shape the negotiation starts with who makes their case first.

When you’re always reacting to a plaintiff’s demand, you’re already on the back foot. You’re in a defensive posture, trying to claw back ground instead of setting the terms.

That’s why at SigmaSight, we help defense teams flip the script. With data-driven offer packages, attorney behavior analytics, and guided negotiation tools, we empower insurers and their counsel to anchor first, strategically and confidently.

Being proactive isn’t just about speed, it’s about shaping the conversation. When you know your numbers and have the technology to back them up, you can lead with persuasive, grounded offers that create early resolution opportunities and reduce the risk of runaway negotiations.

Anchoring isn’t just a tactic. It’s leverage. And it’s time for insurance defense teams to use it to their advantage.