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Responding to Auto Subrogation

While there are no hard and fast rules for subrogation response, there are steps that can be taken to dramatically improve results. In looking at the industry as a whole, there are three prevailing methods for handling auto subrogation response.

By Christopher Tidball | Updated on October 26, 2011
What happens when subrogation demands come into your organization?  If you are like many in the industry, then responding is not necessarily a high priority. In the eyes of some handling these types of claims, it is often viewed as being just another carrier on the other end of the demand. 

But what happens when the subrogation demand comes in and sits untouched for a month, resulting in an arbitration or litigation filing? What if the demand is reviewed, but improperly negotiated? What if it is simply rubber stamped, despite the demanding carrier overpaying the cost of repairs, loss of use, towing, rental, or storage? What if they paid items often not even owed, such as diminished value or administrative fees?  

During my tenure as a claims and quality assurance business leader with multiple “top 10” property and casualty (P&C) insurers, subrogation response was a source of significant leakage. It also provided a tremendous opportunity to implement a process that resulted in timely and accurate resolution. 

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