Imagine you are the person accountable for subrogation results within your organization. You believe you have a good subrogation program in place. The claims team is a good mix of seasoned and new adjusters with varying degrees of “subro awareness”. It is the end of the year and the last recovery dollar has been posted. Now imagine the disappointment as you realize you have fallen short of your recovery goal. What went wrong?
Insurers recognize successful subrogation programs are critical to customer satisfaction and financial strength, but millions of dollars are left unclaimed each year. In the lifecycle of a claim, the subrogation process can often be the weakest link. For many years the identification and entire recovery process suffered from a lack of automation, having been handled manually by adjusters with competing priorities and a lack of training in a variety of subrogation concepts.
Experienced subrogation professionals understand timely identification of a recovery opportunity is critical to success and the best results occur when the subrogation potential is recognized within days of the first notice of the claim.
Engaging technology to drive success
Most insurers have embraced the use of technology to enhance the customer experience, streamline internal practices and operate more cost effectively. Most recently, the use of telematics for auto insurers is accelerating the claims process, identifying fraud and changing the way risk is evaluated. Insurance carriers and self-insurers seeking long term subrogation solutions might consider how a technology investment may enhance both subrogation identification and recovery processes.
Strong technology brings value to subrogation activities
The use of technology can be critical in the identification and selection of claims with the greatest recovery potential, which are key elements of successful Forensic File Reviews.
The right analytical tools can greatly assist in managing the subrogation process. For example, automation can facilitate the assembly of the demand package so the Subro Specialist can quickly send the documents to the adverse party or insurer for review. Automation enables the Specialist to focus on settling claims or preparing claims having reached impasse for the next step.
Regardless whether subrogation is handled in-house, fully outsourced or partially supported by external vendors, a good subrogation platform should:
- Capture identified recovery opportunities and rate the expected recovery value
- Improve the recovery management process by tracking workloads and results
- Offer customization to incorporate internal best practices
- Reduce clerical tasks
- Monitor and score the performance of internal workforce and external vendors
Strong results need a good beginning
The best year-end recovery results require a continuous commitment to the subrogation process. Technology-driven automation can enhance your subrogation program by creating efficiency and the ability to identify monies which may mistakenly be left behind.