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Subrogation has long been misunderstood, under-utilized, often under-capitalized in the insurance industry. It is sometimes even derided as a drain on otherwise valuable claim department resources. However, the current economic climate has forced a re-evaluation of all potential revenue streams — and that’s what subrogation is, after all — to ensure they are being implemented with utmost efficiency and delivering maximum returns.

This has led to a critical re-examination of how subrogation is perceived and pursued; the role subrogation recovery can play in the life and health of an insurer; and the numerous benefits subrogation can provide, especially to an insured. The results are revealing. Many are reconfiguring several old and axiomatic principles underlying many core concepts in subrogation, and rightfully so, as they are misaligned or counterproductive.

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