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The importance of Early Subrogation Involvement

Updated: Apr 17

We all know that the first step of the claims process is reporting the incident. It is also key in effective subrogation identification and recovery. Often, a subrogation referral isn’t made until the claim is paid and closed, or not referred until the first payment is made. However, getting the subro team involved from the first day can result in quicker and larger recoveries.


The importance of Early Subrogation Involvement


We all know that the first step of the claims process is reporting the incident. It is also key in effective subrogation identification and recovery. Often, a subrogation referral isn’t made until the claim is paid and closed, or not referred until the first payment is made. However, getting the subro team involved from the first day can result in quicker and larger recoveries.


Bob Martines, president, and co-founder of Corporate Claims Management (CCM) wrote, "The longer a file remains open, the less likely full recovery will be possible. Thus it is important to begin the process as soon as possible after the accident occurs. Too often, a claim is settled for fewer dollars simply because of a lack of information, or the party making the demand did not know how much recovery was possible. Also, multiple vehicle accidents, where the responsible party has policy limitations, may well reduce your opportunity to collect, if you're not prompt in submitting a demand. Typically, the third-party insurer will not pro-rate the disbursement without knowledge of all parties involved, a kind of 'first come, first served' situation.”


Early subrogation involvement will help ensure there is no spoliation of evidence, make sure evidence is preserved, as well as assist in determining if additional experts are needed. Further, if witnesses need to be followed up with, speaking with them early in the investigation will ensure their account of the facts of loss is more accurate. Also, it will ensure that, if necessary, counsel is involved early in the process to protect your subrogation rights. If a lawsuit is necessary, a judge, jury, or other professionals could potentially look more favorably because an advance notice was given.


Currently, AI is front and center to achieve early subrogation detection and recovery success. Here's how:

  • Assist with claim triage, saving time, and increasing accuracy rather than utilizing the normal manual triage

  • The number of claims with missed subrogation opportunities will be greatly reduced as AI eliminates human error and biases.

  • Ability to identify liable third parties as part of the subrogation process

  • Predictive modeling and analytics can also help claims examiners prioritize tasks and maximize productivity by flagging high-risk claims


Early subro detection can decrease missed subrogation opportunities and increase recoveries. Correct and accurate reporting at FNOL, early reporting, as well as the intake claims team asking the correct questions, are the first steps to identify subrogation potential. Subrogation is second only to premiums in how insurance carriers bring dollars in the door. In addition to keeping premiums lower and returning deductibles to the insured, it is beneficial to your company's bottom line.


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