Claims costs are on the rise in North American P&C insurance. Carriers have responded to these difficult market conditions by raising rates and reducing coverage areas -- but this is an unsustainable path for the industry if it hopes to remain a trusted and valued partner for risk management to a broad range of customers.

Subrogation represents a way for insurers to normalize their revenue without leaning on customers to make up the shortfall. However, this area has traditionally been under-resourced and under-invested in relative to its value. Many insurers manage subrogation manually and ad-hoc, or with limited functionality within a claims management system. However, there are solutions in the market that bring dectection and management capabilities to subrogation, treating it with the same care as the original claim.

In addition, the ascendance of AI in the insurance enterprise is revolutionizing document-heavy, process-driven tasks like subrogation. Creating a digitally transformed, active and efficient subrogation organization represents a quick win for insurance carriers on the business side -- and a valuable use case for AI whose lessons can be applied across a carrier.