"Letting go of the old to make room for the new" A cliché yes, but one that has significance when deciding to outsource your subrogation files.
With a tight economy and possible recession looming, Insurance carriers need solid options to stay ahead of the game and be leaders in the marketplace. Their customers need to feel that their carrier is financially strong while at the same time they need to perceive there is value in the premiums they pay.
A carrier has much to be focused on-Investment incomes, reserves, expenses, and most importantly, their customer. How can you meet these challenges along with the pressure of losses, customer satisfaction and the need for customer retention? When it comes to subrogation, they can do this by recognizing the value that a subrogation outsourcing partner can bring to their "subrogation house".
An in-house subrogation unit's pressures are not unlike the carrier's. The average experience level of staff adjusters has declined while the average workloads have increased. While the "old" claims continue to age, the "new" ones keep coming in the door. Being able to work each claim in a timely fashion can be a daunting task due to lack of time but also a lack of resources and technology. Engaging an outsource partner will mean increased recoveries for you and increased satisfaction for your customer. Higher profits, higher satisfaction all can mean a higher market share for you.
But there are plenty of "collection companies" out there and they almost all work on a "no recovery - no fee basis" right? This is true and that's why it's important to choose a partner wisely. You want an outsource partner that is experienced in handling subrogation claims, not just a debt collector.
Claims experience in your outsource partner is invaluable! A debt collector doesn't typically have the knowledge base to argue factual or legal issues that can arise. An outsource partner with claims experience will recognize issues of spoliation or perhaps the need for further investigation to solidify your position. Does your outsource partner have the technology and tools necessary to achieve results? Can you easily monitor your claims or do you have to wait to hear from them? Lastly, do they really "partner" with you? Having your outsourcing partner easily accessible and responsive builds a positive relationship that is working for a common goal; higher recoveries handled in an efficient and cost-effective manner.
Lorrie Burkes, Manager
Mariposa Recovery Services