Subrogation in the motor insurance market represents the best and worst of how the sector operates, although intervention from the Competition Commission could provide the impetus needed for insurers to eradicate the most dysfunctional practices within this area.
In round figures, subrogated claims make up one-third of all claims, given the roughly similar split between the fault, non-fault and shared liability claims that characterise the market. However, when it comes to dealing with these subrogated claims, the insurance market has failed to find an efficient and up-to-date solution.
With the motor sector in agreement that the dysfunctional subrogation process is in need of repair, will Competition Commission action resolve the situation? And how can insurers help themselves? Download Edward Murray's article to find out.