Why Outsource Subrogation?
As a claim’s executive, I often asked myself the very same question. After all, I am paying staff to do the job. Right? But outsourcing comprises so much more than hiring someone to do work that your own staff could do. True outsourcing is a partnership whereby you identify areas in which you excel and areas in which you struggle. It is the old adage of getting tasks completed better, faster, and at a lower price point. Let us take a look at each of these.
Getting things done better. Quality is paramount to outcomes. Subpar quality results in leakage on claims and unnecessary expenses. No two companies are the same, and while one company may excel in an area, others may flounder. Determining the latter is critical to identifying partnerships with outside vendors. In our case we focus on subrogation. In addition, we have the experience and unique ability to identify claims that were closed without ever being sent to subrogation. We conduct these studies at no charge and provide critical advice to improve your processes and, ultimately, your outcomes.
Doing things faster. Let’s face it, speed wins. The company whose adjusters can handle five claims per day with zero defects will outperform those who can only handle two to three claims per day. It is a mathematical reality. It is also a personal reality that the voice of the customer says the most important aspect of a claim is getting paid. A partnership with SecondLook allows carriers to move time-consuming tasks off the adjuster’s desk so they can actually handle more claims per day without being bogged down in time-consuming matters, such as subrogation or arbitration.
Creating a Lower price point. While bigger companies tend to have economies of scale, they can also be weighed down by internal bureaucracies. Partnering with a smaller business partner focused on strategic outcomes can allow you to offload certain costs, driving down expense ratios. With over 600 years of collective experience, we have the ability to handle claims. With nimble internal resources and advanced technology, we can offer services at a lower price, as well.
Does outsourcing get results? It depends on your business partner. But the SecondLook promise is that we do get results. In fact, our clients often see a 20-30% improvement in year-over-year recoveries when working with us. Our closed file reviews will always yield missed opportunities. We are so confident of this that we do these reviews at no charge to you! In fact, we will not only do a second look, but a third look as well. In a recent tertiary review, we found over $2 million dollars that the first two levels of review (adjuster and vendor) overlooked.
Most often, outsourcing is not an all-or-nothing proposition. Rather it is working together to find the deltas in your processes that would benefit from fractional outsourcing. For example, a carrier may do a great job on automobile subrogation but struggle with New York PIP. We are the largest filer of New York PIP arbitrations in the nation for this very reason. Other carriers may struggle with workers’ compensation, which is why we have a dedicated team to focus on not only on subrogation but also credits that are often overlooked. For every aspect of subrogation, we have a team of experts ready to help and can work with you to identify areas where SecondLook can give you a lift.