How to Choose the Best Subrogation Provider: 8 Key Criteria

Running a small insurance company often involves balancing competitive premiums with excellent customer service. For self-insured businesses, managing financial losses can be a constant challenge. However, one often underutilized tool in this battle is subrogation – the legal process for recovering costs from the party at fault for the loss.

If your organization lacks the expertise or resources to pursue subrogation effectively, outsourcing might be the solution. The qualifications and services of potential providers should be evaluated carefully. For instance, when thinking about subrogation recoveries, does your provider have in-house experts that include investigators and risk control professionals who can assist in that recovery? Do they handle the entire recovery process? What services are included in their scope?

Seek a provider capable of handling the entire recovery process, from the initial loss report to resolution, including litigation. This comprehensive approach saves both time and money.

For example, QuantumSubro^SM by Travelers manages everything from investigation to developing theories of liability, sourcing experts, submitting demands, negotiation, and pursuing recovery (either pre-suit or through arbitration or litigation). Clients gain peace of mind knowing that trusted professionals handle the entire subrogation process, allowing them to focus on other important aspects of their business.

2. High-quality, readily available professional resources

The subrogation process can be complex and involve many layers. Successful subrogation recovery depends on dedicated and trusted professionals who are ready when a loss happens and activity is ongoing. Find a provider with industry-leading expertise, a proven track record and highly trained staff readily available to handle the complexities of subrogation.

QuantumSubro leverages the extensive professional resources of one of the largest property and casualty carriers in the industry. Their dedicated subrogation professionals are trained at Travelers’ state-of-the-art facility. The specialized staff includes origin and cause investigators, forensic lab experts for evidence retention and testing, data and analytic professionals, subject matter experts and lawyers.

3. Recoverability assessment

Not all losses have recovery potential. A skilled provider should assess the viability of each claim upfront to determine its potential for recovery, saving time and resources.

QuantumSubro’s experienced professionals review losses upfront for viability and subrogation potential. If they don’t recover, you don’t pay. It’s that simple. They have a vested interest in your success and it shows in how they pursue recoveries.

4. Specialized knowledge

Subrogation and recovery require an expert approach. Look for a provider that has extensive experience handling losses of various severity levels, types, damage amounts and across multiple business lines. Are you confident they used the right resources, strategy, and expertise and achieved the best outcomes for their clients?

QuantumSubro is well-equipped to pursue recoveries for losses of all severities and causes, including auto, commercial trucking, cargo, property, catastrophes and wildfires.

Beyond that, QuantumSubro specializes in innovative recovery methods such as aggregate trend analysis to determine if multiple losses stem from the same product failure. Combining similar losses can improve recovery efforts over time. Additionally, QuantumSubro shares recovery insights with customers to help them identify loss patterns in their business. This can help inform risk mitigation strategies that may help reduce the risk of losses in the future.

5. Flexible data submission and ingestion

A good subrogation provider can adapt data submission methods to work best with your business. They should be experienced in working with clients of all sizes and technical capabilities to ensure data is efficiently and securely received and processed. The provider should have cybersecurity practices in place to ensure your information and confidentiality is protected. 

QuantumSubro provides flexible methods for submitting information. Access to data is restricted to employees fully dedicated to QuantumSubro’s clients.

6. Detailed and informative reporting.

Look for a provider that offers meaningful data collection, analysis and reporting to track the progress and breakdown of your losses to help you make informed decisions.

QuantumSubro provides each client with customized reports showing crucial metrics highlighting recovery potential and outcomes. Data can be segmented in various ways and reports can show a myriad of information including inventory pipeline, cycle times, peril, and state mix, and other important information to meet each client’s specific needs.

7. Industry reputation

Trade and professional organizations establish industry standards to maintain quality and consistency within their fields. When choosing a subrogation provider, ensure they are affiliated and active across the most relevant and reputable industry groups.

QuantumSubro is involved with several subrogation and insurance industry organizations. They are proud to partner with the National Association of Mutual Insurance Carriers (NAMIC) to offer exclusive member discounts* on subrogation services and are active members of Arbitration Forums, providing clients with a cost-effective and efficient resolution options. QuantumSubro is also a member and sponsor of the National Association of Subrogation Professionals, the country's leading subrogation association.

8. Track record

Research a provider’s success rates and industry peer comparisons over time to gauge their effectiveness and potential to meet your business needs.

QuantumSubro is supported by the same resources that have enabled Travelers to recover more than $6.9 billion across business lines in the last ten years.

The most effective businesses and insurance carriers know, choosing the best subrogation provider for their needs is essential to recovering what is due to their businesses. QuantumSubro offers comprehensive subrogation services at a reasonable cost. With expertise, affordability, and ability to pursue recoveries of any size, QuantumSubro ensures efficient and effective subrogation.

Getting started with a subrogation provider

To learn more about their powerful suite of services, email QuantumSubro@travelers.com.

*Exclusions may apply.