[jlokier]

Not really. Having the option of a lawsuit is just a backup; the possibility is what makes sure the insurer chooses to pay without one.

An insurer that knows when it doesn't have a case and will be forced to pay (plus costs) when there's clear evidence of coverage and loss will almost always pay without a fight.

However if there are high-value decisions which are not so clear cut, then having the option to go to court or some other mediation system to settle is quite useful. One of the critisms of "code is law" is the lack of mechanism for nuanced, human intervention when something unexpected happens due to a bug, design flaw or unexpected consequence that turns out to be unreasonable.