What is the main benefit of having a "Consent to Settle" clause in insurance policies?

Having a "Consent to Settle" clause in insurance policies primarily benefits the insured by ensuring that their consent is required before any settlement is made on a claim. This provision is crucial for policyholders because it gives them a degree of control over the settlement process and prevents the insurer from settling a claim without their approval.

In situations where the insured feels that a proposed settlement may not be in their best interest—perhaps because it could affect their rights or because they believe the claim has more value—they can refuse to agree to the settlement. This clause serves as a protective measure, ensuring that the insured is not left at a disadvantage due to decisions made solely by the insurer. By requiring mutual agreement, it promotes a collaborative approach to claim resolution and helps maintain the insured's interests throughout the claims process.