There aren’t many books that explain how to become a subrogation specialist. This article is for people who are interested in a career in subrogation. Although it can seem complicated, one can easily get started in subrogation.
There are many companies in the country that specialize on subrogation recovery. Subrogation simply means the pursuit of reimbursement for insurance claims that were not paid by another party. Subrogation specialists represent an insurance company and seek to recover payment claims from those who should have paid them. Imagine that you were in an accident that wasn’t your fault and that the other person who caused it was uninsured. You would have to file a claim against your company. If your company has a subrogation division, here is what they should do.
1. The specialist will first try to contact the person at fault. This can be quite difficult. A good subro specialist is able to locate people. They must be a skilled skiptracer. Skiptracing is the art and science of finding people who are hiding or “not that stable”. People who don’t have insurance usually come from lower income groups and can’t afford it. They may not be able to afford insurance. This implies that they won’t be able to afford a house and will have to find a way of keeping in touch with their family and friends. They may be moving frequently so it is difficult to find a good phone number or mailing address. Even if you have a good address, it is unlikely that they will respond to your letter stating that they owe money. This is an art form, so find a good number to call.
2. If one cannot locate a good location, they should first search the “common sense” avenues of finding one. This includes canvassing last known address information or other tricks I won’t divulge, hehe. Specialists who work for a legitimate company will have access “special” databases that will give them a last known address. A skilled specialist will look for phone numbers of businesses and addresses near the subject’s home. This will help to make the search easier and eventually, the specialist will be able to contact them. It’s easy to learn and it doesn’t take much time.
3. Once you have found a contact point, your primary goal is to contact the “tortfeasor” by phone or at least electronically. Then the goal is to negotiate some type of resolution to the pending lawsuit (if authorized)/subrogation claim. Skiptracing and negotiation training are the most difficult or perhaps I should say missing. Subrogation specialists have the negotiation tools that make it easier to negotiate after location. This is a far better option than for consumer debt collectors. Subrogation has more teeth than other forms of collection (it is a tort claim, not a consumer debt). Washington and Colorado disagree. Nearly every state has a law that allows the subrogation specialist in order to suspend a driver’s license due to the “uninsured motorcyclist’s fault” or uninsured accident. This field is not well-known and there are few specialists who are “exemplary” or extremely knowledgeable. A subro company typically trains a specialist from scratch because the pay rate is lower than that of an experienced adjuster (which might not make a great recovery specialist). Although it is changing, for many years, the subro adjuster has been viewed as a “sub-par adjuster”. This is a niche field that requires hands-on training or specialty training. While having some experience in claims adjusting is an advantage, the right training can compensate for this lack. Subrogation isn’t required as the specialist won’t be actually adjusting claims.
4. An individual without any adjusting experience or license can earn up to $65K annually if they have the right training.
You can do a little bit of research if you’re looking to make a career change or get into a specialty. Although subrogation is a growing field, many small insurance companies do not have an in-house specialist. A person can have an amazing career and help to keep insurance rates down by getting the right training. This would be a public service and the subrogation industry has gained recognition. Many lawyers do not do anything but pursue subrogation claims. A skilled subrogation attorney can make a lot of money and build respect in the insurance industry.
