New National Survey of P&C Insurance Company
CFOs Confirms That Subrogation Equals Profit

“Subrogation Operations: A Financial Point of View” Reveals that Insurance Company CFOs Who Report Subrogation as a Core Activity Report Higher Recovery Rates

—Survey Conducted by The Ward Group; Commissioned by Praxis Consulting—

Muncie, IN (November 30, 2009)—Praxis Consulting, a provider of specialized subrogation consultative services, recently commissioned third party research firm The Ward Group to conduct a survey among CFOs at property and casualty insurance companies nationwide. The results, which are presented as a white paper titled “Subrogation Operations: A Financial Point of View,” reveals CFOs’ perspectives on subrogation’s impact on profit at their companies. The findings show that CFOs view subrogation recoveries as having a positive impact on profits, and CFOs who treat subrogation as a core activity, report higher profit and satisfaction.

“Our work to continually raise the bar for subrogation benchmarking and industry best practices means making insurance company CFOs a top priority,” said Robert Ford, President and Founder of Praxis. “The results of this particular survey offer us invaluable insight into the perspectives of people we directly support as well as the state of the subrogation industry as a whole. With each new survey we solidify our notion that when the proper resources are allocated to subrogation, the practice becomes a viable source of profit.”

In response to Ward Group’s recent white paper, which indicated that the typical insurance company recovers approximately 5.1% of their paid losses via subrogation and that even small increases in subrogation recovery have significant effects on the loss ratio and a company’s profit or loss for any given year, Praxis Consulting commissioned the company to survey a diverse group of CFOs about their companies’ subrogation activity, profitability, reporting and operations. The responses were collected between October and early November.

When asked to rate the impact of subrogation recoveries on their company’s net income, 67% of participants indicated subrogation recoveries had “some” or “significant” impact on their company profits.

Thirty-nine percent (39%) referred to subrogation as a core activity at their company, indicating that it plays a significant role in discussion and planning carried out by the senior management team.

Alternatively, the 17% percent of CFOs who indicated they felt they could more effectively utilize the headcount and expenses associated with subrogation elsewhere in their company also rated subrogation as having some or no strategic importance. Notably, those companies that considered subrogation a core activity—independent of whether handled internally or by an external subrogation services provider—felt it had a higher impact on company profit than those that did not

Aside from premiums and investment returns, subrogation is one of the few remaining ways insurance companies generate revenue. The survey ultimately concludes that companies with CFOs who view subrogation as a core operation are more likely to see greater impact on their financial results.

This survey additionally offers insight into ROI, common reporting metrics, overall satisfaction with subrogation and CFOs’ satisfaction relative to the competition. Visit to request the complete results.

About Praxis Consulting

Praxis Consulting ( is a service provider specializing in subrogation benchmarking, outsourcing and closed-file reviews and enhancing the recognition and recovery results of U.S. auto insurers, self-insureds and municipalities in all 50 states. Praxis was founded in 1997 and has compiled a vast library of best practices in the area of subrogation recognition and recovery. As a niche provider, Praxis possesses a significant competitive advantage due to its size, strength and capacity.

About Ward Group

Ward Group is a consulting firm specializing in the insurance industry and the leading provider of industry benchmarking and best practices services. We help companies measure results, optimize performance and be more profitable. For more information about Ward Group, visit