Claims settlements: How to find lost liability opportunities

Claims managers across the industry agree that their companies miss many opportunities to apply comparative liability in automobile and general liability accident claims.

In auto accidents involving multiple drivers, claimants bear a degree of fault in as many as 20 percent of claims. Although carriers apply some liability to claims using manual processes, file reviews indicate this occurs in only 5 to 8 percent of cases. That means claim departments overlook opportunities to apply comparative liability in 12 to 15 percent of cases.

The result? Carriers pursue subrogation in only 20 to 40 percent of the cases where they could do so. They're missing too many opportunities.

This paper studies how claims professionals can overcome obstacles to finding liability opportunities by leveraging technology.