Determining if another party may be responsible for all or part of a policyholder’s claim has long been a tedious, highly manual process that often hinges on the experience and expertise of the claims professional. This manual approach becomes even more challenging when you consider the governing rules and requirements that impact each opportunity. And even when claims that may be subject to recovery activities are discovered, it is not always easy to determine if subrogation is worth the time and energy to pursue.
However, it is becoming increasingly clear that taking a more aggressive stance toward subrogation is in the best interest of insurers and their customers. Industry estimates put the cost of missed subrogation opportunities at $20 billion annually in recovery losses. And for those claims where a subrogation opportunity was present but not acted upon for whatever reason, insurers overpaid claims by an average of more than seven percent.
In an economic environment that is putting increasing pressure on profitability and combined ratios, insurers must seek out new opportunities in their focus on claims process excellence. Advances in insurance technology, including solutions employing artificial intelligence, are providing insurers with new tools to better identify claims with subrogation potential in a timely and consistent manner.
Download Shift Insurance Perspectives: Intelligent Subrogation Detection to learn more.