Subrogation & Salvage
Subrogation Known By Another Name
Transfer of Rights of Recovery Against Others
Bad Faith
an insurance company's unreasonable and unfounded refusal to provide coverage in violation of the duties of good faith and fair dealing owed to an insured
Why is subrogation important
Allows company to recover monies it has paid to its insureds; huge impact on bottom line
Five Branding Factors
1. Differentiation
2. Recollection
3. Scalability
4. Complementary Touchpoints
5. Applicability
Salvage def
property saved or remaining after a fire or other loss, sometimes retained by an insurance company after they've compensated owner for the loss
Distribution Considerations
Expense
Control
Desired market penetration
Scalability
Hard Fraud vs Soft Fraud
Hard Fraud - insured deliberately plans or creates a loss
Soft - insured exaggerates an otherwise legitimate claim (inflates costs)
Distribution methods
1. Independent Agency Systems
2. Exclusive Agents
3. Direct Marketing
4. Online Marketing
use independent agency sys to achieve better market penetration, leveraging agents' existing relationships
use direct distribution to create brand awareness but this is expensive
use online distribution for transactional policies like personal lines
Law & Order SIU
Special Investigations Unit - reviews claim file, conduct investigation, deny claim if it's fraud - if not, return file
Competent Leadership & Mgmt
Effective Use of Automation
Track Record of Business Success
Identifiable Sales Culture
Agency Mktg Plan
Knowledgeable & Professional Staff
Commitment to the Company
Perpetuation
Timely Accounting Practices