What Is a Subrogation Specialist?
Insurance is a complex industry that requires a large team to work cohesively. A crucial piece of the puzzle is the subrogation specialist. So, what is a subrogation specialist, and what do they do?
This guide aims to explain the rather complex process in simple terms. Let’s reveal the skills and requirements needed to tackle all the responsibilities and challenges of subrogation specialists.
What Is a Subrogation Specialist?
A subrogation specialist is an expert employed by an insurance company who handles recovering funds from an at-fault party when a claim is filed. In other words, the subrogation specialist is responsible for identifying third-party liability and ensuring insurance carriers are properly compensated for the damage or loss.
Typically, a subrogation specialist can assist with claims in various cases, such as car accidents, medical expense coverage, property damage, consumer rights, work or personal injuries, etc. The day-to-day activities of subrogation specialists require them to collaborate with legal teams, claims analysts, field adjusters, and other insurance professionals.
The subrogation process is essential for insurance companies from a financial perspective. As a rule of thumb, in subrogation cases, the victim's insurance company is reimbursed for the insurance loss the at-fault party has caused.
Source: shutterstock.com / Photo Contributor: Nichcha
Role of a Subrogation Specialist
The complete answer to what is a subrogation specialist requires getting familiar with the key responsibilities and qualifications needed to become one. They are as follows:
Key responsibilities
The job description in subrogation specialist job openings includes a serious set of responsibilities. It actually provides a sneak peek of what does a subrogation specialist do.
The list of subrogation specialist responsibilities is long, but in a nutshell, the subrogation specialist job description focuses on the following duties:
- Reviewing insurance claims and all related documentation to determine whether there is subrogation potential or not.
- Finding evidence and taking adequate actions to ensure claims pursuit and development.
- Collecting all necessary documentation and data needed for reimbursements.
- Handling all recovering payments.
- Calculating subrogation expenses.
- Negotiating settlements with other insurance companies of individuals at fault.
- Recovering funds from liable third parties.
Essential skills and qualifications
The path to becoming a subrogation specialist depends on the insurance company's hiring. The educational qualifications for subrogation specialists vary greatly from one company to another.
For instance, some employers require a bachelor's degree in relevant fields such as business, finance and legal studies. Others will hire candidates with relevant training, such as courses from the National Association of Subrogation Professionals and other certifications. Lastly, some employers seek candidates with a minimum of a High School Diploma or an equivalent.
While insurance companies do not agree on the educational requirements for a subrogation specialist, they generally are on the same page regarding the skills. What most companies look for in their ideal subrogation specialist candidate are:
- Advanced analytical skills for investigating claims
- Strong negotiation and communication skills
- Deep understanding of insurance policies, laws, and regulations
- Relevant experience in claims handling
- Excellent computer skills
As a rule of thumb, the entire process on how to become a subrogation specialist might take several years. For positions requiring a relevant bachelor’s degree and experience, candidates must invest four years in education and one to two years in gaining the necessary work experience.
The Subrogation Process
When an insurance company covers the damages of the not-at-fault side of an accident, it starts a subrogation process to get reimbursed from the insurance company of the at-fault side. While it might seem simple, subrogation is divided into two key phases: investigation and recovery. Certain instances can be resolved in a matter of weeks, while others may need years.
Investigation phase
The initial phase of the subrogation process is called the investigation phase. The subrogation specialist starts by beginning the identification of subrogation opportunities. Not all claims are eligible for payout recoveries.
One indicator that a subrogation opportunity is present is when a third party is liable for the insured’s loss. Subrogation specialists and other claims professionals must assess the situation, gather all evidence, review police reports, and interview witnesses to build a promising case.
Recovery phase
If the subrogation specialist, with the help of other claims specialists, assesses liability and sees potential for recovery, they will notify the responsible party and request reimbursement. All documentation collected in the previous phase is presented to complete the subrogation faster.
Once the responsible party reviews the case, they might initiate the negotiation process. If a middle ground is found, the subrogation will be considered successful when the payments are collected. On the other hand, if the responsible party doesn’t want to cooperate, the subrogation process might result in pursuing legal action.
Challenges Faced by Subrogation Specialists
Subrogation specialists must be prepared to face and find solutions to various challenges. The barriers to subrogation recovery include:
- Uncooperative policyholders
- Navigating complex policy terms, legal, and regulatory requirements
- Difficulties gathering the necessary documentation
- Spoliation or hiding of evidence
- Dealing with independent adjuster reports that don’t address subrogations
- Efficiently and successfully managing high-volume cases
Source: shutterstock.com / Photo Contributor: SaiArLawKa2
Become a Subrogation Specialist With Afni!
Having the answer to the dilemma of what is a subrogation specialist, might trigger curiosity about finding the best companies with relevant job openings. One of the best employers that constantly has subrogation-related job openings is Afni.
The Afni family is the most diverse, with employees from the US, Mexico, and the Philippines. The company offers remote and on-site subrogation specialist positions.
Working at Afni is full of life-improving perks. The company offers competitive salaries for subrogation specialists and an excellent working environment surrounded by supportive colleagues. Every employee can use tuition reimbursement opportunities and paid leave.
Don’t miss out on the opportunity to apply for a job in subrogation at Afni and prove your worth!
Author
Samantha Byard is the Recruitment Marketing Manager for Afni and brings a wealth of knowledge and tips for job seekers. She holds a bachelor's degree in public relations and marketing from Mount Saint Vincent University as well as a masters degree in digital marketing and advertising from Liberty University.
