Praxis Analyzes Auto Subrogation Performance with New Industry Benchmark Study
MUNCIE, INDIANA, February 2, 2017 (Newswire.com) - The National Association of Subrogation Professionals (NASP) Auto Subrogation Benchmark Study co-sponsored by Praxis Consulting examines claims business practices, trends and performance metrics used for tracking the total impact of auto subrogation. Released every four years, the NASP study is a valuable analysis tool to help an auto insurance carrier evaluate its processes and performance specific to subrogation. The participants in the 2016 study range from smaller and mid-sized carriers to some of the largest personal and commercial auto insurance companies. The results of the study are intended to be representative of where the industry is now and suggests where it might be headed.
Nathan Vance, Vice President of Business Development for Praxis states, “We see that subrogation has become more essential in the competitive landscape of auto insurance since the last study. As the only study that benchmarks auto claims subrogation process and performance, auto insurers we serve eagerly anticipate new findings to learn how they stack up to their industry peers and refine any areas in need of improvement.”
The NASP study reveals that across the industry, key indicator performance tracking has improved over the last four years. However, still just over half of the participants indicate they track gross recoveries by geographic concentration and only 35 percent track file quality score by coverage type."We see that subrogation has become more essential in the competitive landscape of auto insurance since the last study. As the only study that benchmarks auto claims subrogation process and performance, auto insurers we serve eagerly anticipate new findings to learn how they stack up to their industry peers and refine any areas in need of improvement."
The latest data illustrates that subrogation units have made improvements, but the power of benchmarking performance, especially in niche markets, is only as good as the action taken in the never-ending quest for continuous improvement. For example, the study reveals that auto adjusters receive limited training in the complexities of subrogation, which makes it less likely for adjusters to identify every opportunity for subrogation.
Surprisingly, the report reveals that 40 percent of respondents never conduct a closed file review and a majority (80 percent) review only a portion, 20 percent or less, of their closed files for missed opportunities. Not surprisingly, those with comprehensive closed file review programs have achieved an average recovery ratio increase of 10 percent.
To learn more about the key findings, industry trends, training and how to apply best practices for optimal results, contact Gina Bradburn or Nathan Vance at Praxis Consulting at (888) 357-8276.
National Association of Subrogation Professionals’ (NASP) mission is to enhance the stature and effectiveness of subrogation and recovery professionals through education, advocacy and the exchange of information. NASP was established in November 1998, to meet the needs of the subrogation industry and to provide educational opportunities for insurance professionals. For more information, contact Elle Wiernik at firstname.lastname@example.org.
About Praxis Consulting Inc.
Praxis Consulting Inc., founded in 1997, is a privately owned and operated, full-service subrogation firm operating throughout the U.S. with offices located in Beverly, Mass., Bohemia, NY, and Muncie, Ind. Praxis Consulting's suite of cost mitigation services caters to a variety of insurance carriers, self -insureds, governmental entities and TPA’s for timely identification and recovery of paid claims, such as Auto, Workers' Compensation, Property and Disability. For more information, visit praxisconsulting.com.
Source: Praxis Consulting