04 Sep The Benefits of Outsourcing Carrier to Carrier Subrogation Services for Fleet Operators

An accident occurs with one of your fleet vehicles. Your insurance covers the damages, but since another insured driver caused it, you must recover costs from their insurance. Typically, your insurer handles this, but did you know outsourcing the task to a specialized company is an option? This is called carrier-to-carrier subrogation.

If you’re looking to outsource yours but unsure whether it’s the right choice, you stumbled on the right article. We’ll explore the benefits of outsourcing carrier-to-carrier subrogation services and recommend hiring tips to help you make the best decision for your fleet.

Understanding Carrier-to-Carrier Subrogation

Let’s first understand how carrier-to-carrier subrogation works and why outsourcing may be a good option for you.

Subrogation typically refers to one party (usually an insurance company) acting on behalf of another (the insured) to seek reimbursement from the responsible party after paying a claim.

In carrier-to-carrier subrogation, two insurance companies are involved—one pays the claim, while the other is responsible for reimbursing it. This is particularly common in situations involving fleet vehicles or commercial trucks.

Why does it matter? A 2023 study found that insurers miss out on about $15 billion in annual recoveries due to lost opportunities. Inefficiencies in the subrogation process could be one factor in this failure. With carrier-to-carrier subrogation, you can uncover potentially hidden funds, foster safety and accountability, and establish cooperation among insurers for a faster resolution.

That said, several challenges may arise when managing carrier-to-carrier subrogation in-house. It can be time-consuming and technically challenging, present legal hurdles, and require expert strategies to maximize recovery. When any of these happen, it’s time to consider outsourcing your subrogation process.

Benefits of Outsourcing Carrier-to-Carrier Subrogation Services

Let’s discuss the four benefits of outsourcing carrier-to-carrier subrogation services and see if they align with your needs.

Expertise and Experience

As mentioned earlier, managing carrier-to-carrier subrogation requires skilled strategies to recover the full amount you’re entitled to. This calls for the expertise of subrogation specialists, as subrogation typically falls outside a fleet operator’s responsibilities.

Subrogation experts understand the intricacies of claims and have established procedures that help speed up investigations and resolutions. They also reduce administrative burdens by handling complex paperwork and conducting thorough analyses on your behalf.

Cost Savings

Outsourcing may seem like an additional expense in your budget, but when done effectively, it can help you save money in the long run. Having subrogation specialists reduces the need for in-house resources, minimizing the time and effort spent processing claims while securing successful recoveries.

Pay only a portion of the recovered funds to avoid the costs of maintaining an internal team. This leads to higher recovery rates and faster resolution times, promoting financial savings and cost-effective claims management. 

Time Efficiency

Time is paramount in subrogation. Timely processing minimizes downtime, reduces financial losses, and maintains operational productivity. However, reviewing each claim takes significant time and effort, making it challenging to juggle core operations and administrative tasks.

To ensure you identify all recovery opportunities without compromising other tasks, outsource subrogation to specialists. This will accelerate claims processing and resolution and free up your internal resources, allowing you to focus on core business activities.

Access to Technology and Resources

Access to advanced technology and resources is one of the best advantages of outsourcing carrier-to-carrier subrogation services. Your in-house team might overlook tools that simplify subrogation. With tech-savvy experts on your side, you can leverage every technology-enabled solution available to improve the recovery procedure.

Cutting-edge features include automation, real-time data, predictive analytics, and digitized document storage and collection. Such attributes effectively enhance data management, analytics, and communication when processing claims, leading to better outcomes for fleet operators. 

How to Select the Right Subrogation Partner

You now know why it makes sense to use outsourcing to your advantage. This time, let’s determine how to select the right subrogation partner to manage carrier-to-carrier claims successfully.

Expertise

Evaluate your prospective partner’s experience and track record in handling carrier-to-carrier claims. Do their past successes and approaches align with your specific needs and goals? Remember: subrogation spans multiple areas and industries, so it’s essential to look at their specializations.

Fleet Response, for instance, has over three decades of experience in fleet management. Specifically, our carrier-to-carrier team offers over ten years of expertise in subrogation matters, from setting department KPIs to personal injury protection.

Reputation

A stellar reputation indicates excellent and trustworthy services from the subrogation provider. Check client testimonials, industry recognition, and other platforms that can provide insight into your prospect’s reputation and credibility. 

Look for accounts that provide specific information about their reliability, expertise, and effectiveness in managing subrogation claims. This will ensure your cases are handled efficiently and in your best interest.

Technology Capabilities

The tools you use directly impact the speed and accuracy of handling claims. This is one of many challenges of carrier-to-carrier subrogation for fleet operators who lack technical expertise. A subrogation provider with a robust technological kit can address this. From advanced tracking to analytics, you can ensure better claims management and recovery outcomes.

When assessing potential providers, research their tech infrastructure. How do they set up hardware, software, networks, and databases? Ask for case studies or demos, and explore reviews highlighting their tech performance and communication.

Cost-Effectiveness

Cost is a major concern when it comes to outsourcing. Many are concerned about potential hidden fees, which is valid. 

The key is to find subrogation services that prioritize cost-effectiveness, considering their pricing structure and financial benefits for fleets. Look for a subrogation provider’s cost structure, recovery rates, client retention, integration processes, and communication style. These factors directly influence your subrogation expenses, so evaluate them carefully and thoroughly before investing.

Case Study: Fleet Response’s Subrogation Strategy for Post-Pandemic Success 

The COVID-19 pandemic has been among the biggest challenges for fleets and insurers. It has resulted in increased claims, supply chain issues, fluctuating costs, and staff shortages. Such issues prompted the need for a subrogation strategy to alleviate the strain, which Fleet Response was able to implement.

Fleet Response adjusted its subrogation strategies to help self-insured companies and large insurance carriers cope with the pandemic’s aftermath. Here are some noteworthy implementations that brought post-pandemic success for our clients.

• In 2021, Fleet Response enhanced its capabilities by acquiring a leading subrogation company known for high ethical standards and exceptional recovery outcomes. This acquisition improved recovery efficiency and maintained integrity in subrogation processes for our clients.
• Fleet Response formed a network of over 5,000 repair shops to expedite repairs and reduce wait times. This allowed clients to make informed decisions.
• Fleet Response presented comprehensive evidence to justify rising rental costs and recover those expenses through subrogation.
• Fleet Response assigned one knowledgeable person to handle each claim from start to finish. When the insurance company calls, they speak directly to this person, who has all the information and can respond promptly and precisely. This way, our clients avoid recovery delays as the claim isn’t passed between staff. 

These examples demonstrate Fleet Response’s tailored solutions and commitment to managing pain points for successful claims resolutions, delivering significant benefits to fleet operators and enhancing overall operational efficiency. 

Takeaway

Fleet operators understand their businesses like the back of their hands. But sometimes, they might need a little backup in the insurance department.

This is where the outsourcing pros come in. Expert guidance, cost efficiency, timely processes, and cutting-edge tools are the top benefits of outsourcing carrier-to-carrier subrogation services. By choosing the right subrogation partner, you can navigate the complex world of claims management with ease. Work within your budget and achieve the recovery cost you deserve. 

Implement the strategies we discussed with Fleet Response. Our carrier-to-carrier team, which began with five employees and has since grown to 110 subrogation specialists, has established itself as an industry powerhouse and a pioneer in loss recovery. Together, we’ll overcome subrogation hurdles and achieve the best payoff for your fleet.

Contact us today to share your concerns, and we’ll call back with result-driven solutions.