Many insurance companies don’t realize how much money is lost in their subrogation departments. Inconsistent processes and improperly allocated personnel can lead to missed opportunities—worth millions of dollars.
Here are three common mistakes we see insurance companies making:
1. Approaching claims and subrogation with the same purpose
While claims adjusting and subrogation are part of the same process, they should be approached differently. Claims adjusting focuses on documenting a contractual obligation, but subrogation is about recovery and needs a business operations mindset. Cost, revenue, and net margin should be the focus—not documenting a file. It may be more cost-effective to outsource subrogation to a specialty company like AnSR to achieve optimal results.
2. Not utilizing staff to their highest value
We often advise company leadership to utilize their staff to their highest value—that is, direct interaction with your customers during the initial service process. Faster, more accurate responses are invaluable to customer retention, satisfaction, and growth. Outsourcing to AnSR, where subrogation is our core competency, allows you to focus on your direct customer interaction while increasing the bottom line.
3. Sticking to outdated, inefficient processes
In business, it’s important to regularly evaluate processes and the investment they return. Some insurance companies are very proud of the efficient subrogation processes that allow employees to do subrogation work in-house but don’t consider the cost. How often do these positions turn over? Is employee morale frequently affected by doing this administrative-heavy task? There is no value in being efficient at work employees shouldn’t do. Often, insurance companies have 50% of their staff processing subrogation claims that result in merely 2% of total recovery. In the long run, it is more cost-effective to outsource, eliminate and automate processes with a low return on investment. Employees can focus on value-added work, resulting in their longevity and higher job satisfaction.
Outsourcing subrogation to AnSR is a no-brainer since our costs are contingent on recovery. Because subrogation is our core competency, resource management, and effective processes are our key responsibilities. We help companies focus on business-critical functions and run more smoothly.
Maron Koop is the Director of Operations for Advanced Subrogation Resources (AnSR).
To learn more about AnSR’s services, click here.