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Enhance the customer experience by reimagining subrogation

Claims operations have evolved over the past several years, achieving greater efficiency by embracing innovation. But one key area remains an outlier in the trend—subrogation.

It’s time to modernize the process, and it starts by moving subrogation closer to first notice of loss (FNOL). In doing so, insurers will reap the coveted prize of greater customer satisfaction and higher retention.


Moving subrogation to FNOL

Subrogation claims can have long cycle times. In many cases, subrogation doesn’t begin until after the claim is settled.

But what if subrogation began closer to FNOL? By equipping claims handlers with essential third-party claimant and carrier information at or near the point of claim, insurers could significantly reduce cycle times. Shorter cycle times mean lower loss adjustment expenses and a better customer experience.

Of course, getting necessary claim and policy data isn’t easy. That’s where automation can enhance the process.

Automation streamlines the recovery process

Currently, much of an adjuster’s time is spent searching for third-party information necessary to process a subrogation claim. Automation can deliver those details instantly.

Analytics applied to industrywide claims and policy data sets can conduct event and entity resolution and automatically deliver third-party details on a claim within the adjuster’s workflow. This type of automation not only increases efficiency, it also eliminates missed recovery opportunities.

Manual referral processes can lead to missed subrogation opportunities. Some of that is attributable to the fact that many experienced adjusters are retiring, and less seasoned claims handlers are filling their roles. The NASP notes that auto adjusters receive limited training in the complexities of subrogation and are less likely to identify recovery opportunities.

Automation can overcome those limitations by notifying adjusters of potential subrogation opportunities at the point of claim and seamlessly integrating subrogation into the claims process.

New opportunities to elevate the customer experience

A customer’s satisfaction with their insurance carrier largely depends on their claims experience. Consider this: according to one survey, 83 percent of customers who were dissatisfied with how their claim was handled have switched carriers or are planning to do so. Streamlining subrogation plays a key role in improving the claims experience.

If an insured is in an auto accident that’s not their fault, it’s likely that the last thing they want to do is pay the deductible out of pocket and then wait months to recover that payment.

But when subrogation is moved closer to FNOL and insurers receive the details they need to initiate the recovery process early, they can waive deductibles and vastly improve customer satisfaction.

Equipping insurers to improve subrogation

Subrogation is ripe for disruption. For too long, insurers have started the subrogation process too late, resulting in dissatisfied customers waiting to recoup their losses. But automation presents a new opportunity to improve the customer experience.

ClaimSearch® is helping insurers streamline subrogation. Its new subrogation solutions analyze billions of claims and policy records from three industrywide databases to automatically deliver adverse carrier and third-party policy details close to FNOL. And that’s just the beginning of how the platform is helping insurers reimagine subrogation and improve customer satisfaction.

Libby Price

Libby Price is director of product innovation for ISO Claims Solutions at Verisk. She can be reached at

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