Manual claim subrogation process is always a huge challenge for non-life carriers, as it usually requires a significant amount of involvement from insurers and third-party companies. Introducing blockchain here could provide an efficient automation mechanism for insurers to manage the subrogation process.
Insurers around the globe face the challenge of excessive subrogation costs and reducing claims recoverable. Though insurers use well-defined processes and technology to reduce the overall costs, they struggle due to following challenges:
Distributed Subrogation Ledger helps you achieve:
Blockchain acts as shared ledger across multiple participants, helping in securing and sharing information. Additionally, Smart Contracts automate the business process on blockchain, minimizing administrative overhead, resulting in increased coverage of subrogation claims with a lower ROI.
Distributed ledger stored on blockchain enables instantaneous and common reconciliation between claiming insurer and insurer of party at fault, reducing potential reconciliation errors and monetary loss.
Common distributed ledger saves reconciliation time between claiming insurer and insurer of party at fault. In addition, Smart Contracts enable automated refund of the deductible to the insured and transfer of salvage recoverable to the insurer of party at fault, resulting in faster recovery of subrogation claims.