Centralized Subrogation
Centralized subrogation reduces the days to recovery by an average of 27.4%. These numbers are substantial and can lead to increases in both customer retention and profit. Praxis’s subrogation specialists are trained to think like plaintiffs. They possess the skills and characteristics necessary to efficiently and cost-effectively recover payment. Centralizing your subrogation efforts with Praxis not only reduces your adjuster workloads; it allows the people who are best trained in recovery to achieve optimal results.
Industry Challenges
Everyone wants to do more with less. The focus is on the core functions of servicing claims, as it should be. But as we look toward subrogation adding to the bottom line and helping meet benchmarks, challenges become more evident.
  • Operating below industry benchmarks
  • Lack of internal resources and expertise
  • Technology limitations
  • Inefficient processes
  • Limited data to measure performance
Most carriers recognize that subrogation is important. In order to contain expenses, subrogation duties may be assigned to claims adjusters who are not properly trained to succeed. Without supplementary subrogation training for claims staff or a dedicated subrogation staff, subrogation results suffer. But when subrogation is centralized, the results are impactful.
At Praxis, we believe industry leading results are achieved through the proper balance of people, process and technology. Industry averages indicate that centralized subrogation experiences a 37.5% higher referral rate on new subrogation opportunities than decentralized subrogation. Other benefits include:
  • Increased recoveries with improved performance to benchmarks
  • Improved loss ratio/reserve reductions
  • Reallocation of company resources to high level priorities
  • Policyholder satisfaction due to deductible returns and proper allocation of fault
  • Documented cost saving and expense reduction model
  • Improved cycle times
  • Feedback to front line claim staff for claim handling improvement opportunities
  • Technical expertise