Loss Control

Claims experience informs both underwriting strategies and the perspectives of potential clients.

Claims experience informs both underwriting strategies and the perspectives of potential clients.

I don't remember my economics professor's name from that 1962 class, but I sure remember the textbook, even though I traded it for a different one the next semester: Economics: An Introductory Analysis, by Nobel Prize-winning economist, Paul Samuelson.

Frequently, claims managers, supervisors, adjusters or attorneys picked up a new claims file and question why a claimant acted in a certain manner. When working a claim, it is generally taken at face value. The facts are as they are in the file, unless some surprises turn up later.

The concept of subrogation can be difficult for some to grasp. It involves looking at a loss with an entirely different lens to see what others may not when it comes to cause and origin for an event.

When subrogation potential exists, recovering large losses is imperative to a carrier's bottom line. Yet often these losses can present the most challenges to subrogation efforts.

Imagine you are the person accountable for subrogation within your organization. You believe you have a good subrogation program in place. The claims team is a mix of seasoned and new adjusters with varying degrees of subro awareness.

Subrogation is an often overlooked part of claims adjusting, although it should not be because of its substantial benefits. Successful recoveries from subrogation provide insurance carriers with money they may not have anticipated; a pleasant surprise from a risk taker's perspective.