CLM Unveils National Law Firm Talent Survey Highlighting Challenges for Both Firms and Clients

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MALVERN, Pa.--(BUSINESS WIRE)--Oct 16, 2025--

The CLM (Claims and Litigation Management Alliance) unveiled results of its Law Firm Talent Survey at the CLM Litigation Management Symposium in Chicago on Oct. 15, 2025. The survey, which captured input from insurance defense and litigation firms nationwide, reveals that the legal industry is grappling with an unprecedented talent crunch that is reshaping law firm operations and client service delivery.

According to the survey, 60 percent of law firms are currently turning down work due to capacity constraints – a practice that was virtually unheard of before the past two years. Recruiting new attorneys is now the top issue for most firms, with 90 percent of respondents saying it is more difficult today than five years ago, and half describing the problem as “much worse.” Notably, attrition rates are especially high as attorneys pursue higher salaries, less stressful careers, or leave for practice areas outside of insurance defense. Retention has proven equally challenging, with more than 70 percent of firms reporting increased difficulty and smaller firms hit the hardest.

The financial burden from constant recruiting, higher salaries, and administrative costs is severe. More than 90 percent of survey respondents expressed concerns about their ability to meet client needs in today’s staff-constrained environment, with many noting delayed reporting, slower case handling, and reduced trial capacity. Despite these significant impacts, many insurance clients remain only partially aware of the direct effects of talent shortages on legal service delivery.

“The survey was conducted as part of CLM’s Litigation Management Task Force, which we established the summer of 2024 to foster industry collaboration and address these growing pressures,” said Susan Wisbey-Smith, President of CLM. “The work of the Task Force showcases the value of law firms and carriers working together to address shared challenges through innovative approaches.”

Some of the innovative approaches addressed by the Task Force in this law firm survey include fostering career development programs, flexible work arrangements, and strategic use of generative AI – to relieve capacity challenges. Additionally, recommendations include reviewing law firm billing rate structures, reducing unnecessary billing audit friction, increasing communication around firm capacity, and providing new opportunities for younger attorneys such as dual-attorney appearances at hearings and trials.

Read more about the survey here.

About CLM

CLM is a vibrant community of claims and litigation management professionals, insurance defense counsel, and service providers who come together for networking, education, and collaboration. Since 2007, CLM has fostered meaningful conversations and provided targeted professional development through local chapters, national events, webinars, and award-winning publications. Through CLM, individuals and organizations can build lasting relationships, showcase their expertise, and strengthen their careers. Learn more at TheCLM.org.

CLM is affiliated with The Institutes.

About The Institutes

The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes' 20 affiliated business units and backed by more than 115 years of experience as a trusted knowledge partner, we empower people and organizations to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. Learn more at Global.TheInstitutes.org.

The Institutes is a registered trademark of The Institutes. All rights reserved.

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CONTACT: Media Contact

Maureen Fitzgerald Penn

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616-889-1218

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KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS PENNSYLVANIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL INSURANCE

SOURCE: Claims and Litigation Management Alliance

Copyright Business Wire 2025.

PUB: 10/16/2025 10:58 AM/DISC: 10/16/2025 10:57 AM

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