What Carriers Forget? – Subrogation
In my 33 years of insurance experience, it seems most carriers are struggling with the following:
- Higher Costs/Expense
- Premium costs for policyholders
- Increase in ALAE
- The total of paid loss and case reserves for known claims
- Struggling economy
- Underwriting moratoriums
- Increased severity trends
After 15 years working at the director level within large insurance carriers in a product management role and overseeing $140M book of program business, no one is talking about Subrogation as a mean to mitigate expenses and reduce loss ratios.
What I have found:
- Claim adjusters are focused on closing claims not subrogation
- Lack of education about how subrogation effects combined ratios
- Effects of subrogation on underwriting income, net income, loss ratio and bottom-line income
- Rising legal costs – Subrogation vs. Attorney
Spending the last 8 years in the subrogation world, the entire product management and claims cycle has come full circle for me.
As one of the largest providers of subrogation services in the United States, SecondLook reviews a substantial volume of claims each year. In reviewing a statistically valid sampling of claims for a Top 5 insurer, the impact that SecondLook had on their loss ratio was impressive. Prior to utilizing the SecondLook program, this client was recovering 4% on PIP subro claims that were being handled in house. SecondLook took over this process, and within one calendar year was able to improve the recovery rate on PIP subro to 8%. The results to the client’s loss ratios was over a 3% improvement in their loss ratio.
I am confident we can help improve your loss ratios for any line of business.
Whether you fully utilize our services, having our experts augment your subrogation organization, or taking advantage of our 600 years of collective experience, I’m confident we can help find missed subrogation for your company. Let us look at your closed claims at no cost to you unless we recover.
Contact me for information on how we can help! Maryann 805-791-4476
