Menu Search through site content What are you looking for?
Menu

Subrogated recoveries will be back on insurers’ radar in 2023

  • Market Insight 06 January 2023 06 January 2023
  • Global

  • Insurance 2023 - the year ahead

An increase in liability claims will likely follow

The pandemic gave insurers a lot to deal with. There was the logistical side of getting their staff working remotely to ensure business continuity. On the claims side, insurers’ attention was focussed on putting the systems in place to get first party claims handled quickly and efficiently. If that was not difficult enough, for many property insurers, having got their claims teams functioning remotely, they were then deluged with an influx of Covid-19 Business Interruption claims.

In such circumstances, it is understandable that priority was given to the front end of claims handling. The knock-on effect though, was that in the rush to provide good customer service, subrogated recovery opportunities were ignored. Now that insurers are back on an even keel, recoveries are back on their radar and we have already had a number of clients approach us for file reviews of claims closed in the last two to three years (and sometimes further back).

Given the current economic client, being able to claw back money through the pursuit of recoveries can have a significant impact on insurers’ bottom line. It is an opportunity that cannot be passed up. Of course, the flip side of an increase in recovery activity is an increase in liability claims, commonly under PL and Products policies. Both first and third party claims handlers could be in for a busy 2023.

View all our Insurance 2023 Predictions here

End

Stay up to date with Clyde & Co

Sign up to receive email updates straight to your inbox!