Realizing Subrogation Potential: Defining Successful Carriers in the Years to Come

In these difficult economic times, many insurance companies, TPAs, and self-insureds are struggling to manage their expenses and improve their bottom line. In dealing with thousands of clients across the country, I am often amazed at how many companies leave a substantial amount of money on the table by not fully realizing subrogation potential. The financial windfall of conducting thorough subrogation investigations performed by expert subrogation adjusters is compelling to say the least.

I see this firsthand when assisting our clients with their subrogation needs. Companies that paid little to no attention to subrogation are now reaping the benefits of this added revenue and, in turn, substantially increasing their profitability. The carriers that are out in front in this area are gaining an instant competitive advantage in the marketplace.

There is potential for subrogation on any claim that involves a third party, including worker's compensation, auto liability, and general liability. Although most claims professionals understand the importance of subrogation, due to the many facets to be handled on a claim, the subrogation claim is often pushed aside to be handled at a later date - or worse yet is not recognized or pursued at all. Investigating, pursuing, evaluating and negotiating a subrogation claim is often complex, time-consuming and intimidating. By outsourcing subrogation at the onset of the claim, you are able to partner with someone who has the skills, expertise and a clear grasp of the steps needed to ensure successful recoveries.

Outsourcing subrogation services makes perfect sense, as it allows claims handlers to focus on their core duties of managing a heavy case load while outsourced subrogation adjusters can focus strictly on effective and accurate investigations that will produce outcomes that will drive overall subrogation recognition. For example, Ethos' subrogation team experienced a total recovery percentage of 55% over the last three years. Prior to that time period, our clients' normal recovery rate was between 10% - 20%. The financial impact of outsourcing subrogation services speaks for itself.

Capitalizing on subrogation as an area of opportunity and outsourcing expertise in the industry is what will define most successful carriers in the coming years.

As we embrace the excitement and challenges of a new year, we would like to thank you, our valued clients, for your business.  We appreciate you very much. For those of you that have never utilized our services, I invite you to give us a few trial cases and experience The Ethos Difference for yourself.

Best Regards,

Ed Cotilla