Insurance Subrogation

Issue

A North American leader in the insurance industry sought to enhance the financial performance of its Subrogation Collection Centers (which had been consolidated from multiple regional processing centers two years earlier) by improving processing effectiveness and reporting capabilities.

Highland Approach

The Highland Group analyzed existing processes associated with Subrogation Services, including linkages to regional field subrogation activities, identified issues, quantified benefits, and developed an action plan to implement improvements. In addition, the team defined performance metrics and implemented a System For Managing against and reporting on those measurements.

Actions Taken

Implemented monthly reporting capabilities to identify performance against key recovery levers, including:

• Collection readiness of claims sent for recovery.
• Referral rates representing the number of claims sent from regional zones to be recovered.
• Recovery rates of claims received for collection.
• Implemented additional training modules for regional zone resources, better enabling subrogation identification, investigation and referral accuracy.
• Identified Subrogation Services organizational models for automobile and homeowner products to more accurately reflect and support zone relationships enabling timely feedback regarding subrogation referral activity.
• Aligned back-end collection processes for litigation and payment processing functions to reflect the organizational model and reporting requirements.