menu
As December approaches, many people shift their attention toward holiday celebrations, family gatherings, and wrapping up the year. Behind the scenes, however, insurance companies are focused on something entirely different: closing out claims before December 31.
Year-end is one of the busiest—and most strategic—periods for insurance carriers. They routinely push to settle open personal injury cases before the new year begins, often contacting injured parties with what appear to be generous or urgent offers.
But why do they do this? And more importantly, how can you use their year-end motivation to maximize the value of your settlement?
As Georgia personal injury attorney Kevin Patrick of Kevin Patrick Law explains, understanding the financial and operational pressures insurers face at year-end can give injury victims meaningful leverage. Let’s break down what’s happening behind the scenes.
Insurance companies are for-profit businesses driven by financial reporting deadlines, investor expectations, and internal performance metrics. Year-end is particularly important for several reasons:
Insurance companies must report their financial health annually. Open claims count as liabilities, and too many unresolved claims—especially those with significant injury exposure—make the company appear more financially vulnerable.
By settling before December 31:
They reduce projected future payouts
They improve their financial ratios
They present stronger year-end balance sheets
This benefits insurers—but not necessarily injury victims.
Insurers are legally required to set aside “reserves”—money earmarked for future settlements or judgments. These reserves directly impact profitability.
If they can settle your claim for less before year-end, they:
Lower their reserve obligations
Increase annual profits
Report better year-end financial performance
The earlier they can “get you off the books,” the less they have to reserve.
Many adjusters receive:
Bonuses
Performance reviews
Settlement quotas
Closure incentives
…that are tied directly to how many claims they resolve before December 31.
This creates a unique period where adjusters are more flexible, more responsive, and sometimes more generous—but only if you negotiate properly.
If a claim carries over into the next calendar year, the likelihood of litigation increases. Filing a lawsuit:
Costs the insurer more money
Requires assigning defense counsel
Extends the claim timeline
Increases the risk of a higher payout
Settling now means avoiding future expenses and uncertainty. That urgency can work to your advantage.
Insurance companies count on the fact that year-end expenses—holiday gifts, travel, medical bills, and reduced work hours—make people more likely to accept a quick settlement.
Their hope is that victims:
Want fast cash
Feel rushed
Don’t fully understand the long-term value of their claim
Haven’t hired a lawyer yet
This creates a perfect storm where insurers offer low settlements expecting high acceptance rates.
Here’s the good news: their urgency can become your opportunity. When insurance companies are eager to settle before the end of the year, knowledgeable attorneys like Kevin Patrick can often negotiate significantly higher settlements by leveraging this timing.
Here’s how.
When insurers are motivated to settle quickly, they are often willing to:
Increase offers
Compromise faster
Approve higher settlement authority
Avoid delays
Your attorney can strategically push negotiations during this period, knowing adjusters are more willing to move numbers to close cases.
The stronger your medical record, the higher the settlement value. Before entering year-end negotiations:
Complete outstanding evaluations
Obtain final diagnoses
Request updated medical records
Ask for a detailed prognosis from your treating providers
The more complete your documentation, the harder it is for the insurer to argue for a low number—especially when they’re desperate to settle.
Adjusters often hope to settle before long-term damages become clear. But when your attorney submits detailed evidence of:
Future medical treatment
Long-term pain
Permanent limitations
Impacts on employment
Diminished quality of life
…it forces the insurer to take full case value into account.
Year-end urgency + strong long-term evidence = higher settlement potential.
Insurers use subtle tactics to get victims to say things that reduce claim value. Year-end pressure can make these tactics even more aggressive.
When Kevin Patrick Law handles communications, we:
Prevent accidental admissions
Control what evidence is submitted
Stop pressure tactics immediately
Position your case for maximum value
This ensures the insurer cannot use the year-end rush to its advantage.
A well-timed, well-supported demand letter can be extremely powerful in November or early December. It forces the insurer to:
Evaluate the full value of your claim
Consider litigation risk
Decide whether to increase reserves
Determine whether they need to settle now
When sent strategically, demands during this period often result in higher initial offers and faster negotiation cycles.
Year-end offers tend to start low—sometimes extremely low—because insurers assume victims are desperate for fast cash.
But with patience and legal guidance, the value of these offers often increases significantly within a matter of days or weeks.
Insurers would rather raise the number than carry your claim into the next reporting year.
Not every lawyer negotiates aggressively at year-end. But at Kevin Patrick Law, we understand how to use insurer deadlines to maximize results.
By combining:
Complete case development
Strategic timing
Strong medical support
Aggressive negotiation
…we turn the insurer’s urgency into your advantage.
Insurance companies push to settle before December 31 because it benefits them. But with the right legal strategy, year-end pressure can be used to benefit you instead.
If your case is approaching the end of the year…
The insurer may be more flexible.
Offers may increase faster.
Adjusters may have more authority to settle.
You may be able to negotiate a significantly higher payout.
Kevin Patrick and Kevin Patrick Law are ready to help you navigate this period effectively and secure the strongest possible settlement.
Get Your Free Consultation Today
required fields *