Conditions for commercial and specialty lines insurers are getting tougher and insurers are facing substantial increases in their claims costs. Many are bowing to the inevitable pressure and are looking, more seriously than they have ever done before, to exercise their right of subrogation against third parties deemed to be at fault for a claim they have already paid, in order to contain their spiraling loss costs.
In a recent article for Insurance Day, SubroSmart explains how while subrogation claims represent a significant contingent asset for insurers, subrogation needs to be about more than just financial recovery in the current market environment.
Commenting on the nature of subrogation claims, SubroSmart said:
“For us, it is about portfolio transparency. Much of the focus of our London office is making sure that the insurers that hire us understand that information, on a programme-by-programme basis. We will work with them to analyse that information and use it to improve their underwriting and business decisions.”