Skip to main content
Back to Resources
GLOSSARY - INSURANCE

What is Subrogation Detection?

Last reviewed:

Quick Answer

Subrogation Detection is the AI process of identifying third-party liability and recovery opportunities in insurance claims. It analyzes claim facts, police reports, witness statements, and photos to flag situations where another party may be at fault, enabling insurers to pursue reimbursement.

Definition

**Subrogation Detection** automates the identification of recovery opportunities that human adjusters might miss, especially in high-volume claim environments. AI recognizes patterns indicating third-party fault, such as rear-end collisions, manufacturer defects, or contractor negligence.

Key Points

  • Analyzes claim documents for third-party liability indicators
  • Flags opportunities for recovery that human review might miss
  • Prioritizes high-value subrogation opportunities
  • Identifies manufacturer defects and product liability
  • Evaluates cost-benefit of pursuing recovery
  • Increases subrogation recovery rates by 20-30%

Frequently Asked Questions

What types of subrogation can AI detect?

Auto liability (at-fault parties), manufacturer defects, contractor/vendor liability, property damage by third parties, and warranty subrogation opportunities.

How does AI evaluate whether subrogation is worthwhile?

AI considers claim value, likelihood of successful recovery, associated legal costs, and historical recovery rates for similar scenarios to recommend whether to pursue subrogation.

Can subrogation detection work in real-time?

Yes. AI flags subrogation opportunities immediately upon FNOL, allowing insurers to preserve evidence and initiate recovery processes while the claim is fresh.