The money is there. The bottleneck is identifying recovery opportunities before they expire.

Insurers leave USD 4 to 8 billion annually unrecovered in unidentified subrogation opportunities. Under manual processes, only 30-40 per cent of eligible claims are identified for subrogation. The average recovery cycle is 12-18 months. Incomplete documentation at the time of the claim is the primary cause of failed recoveries: when the subrogation team discovers the opportunity weeks later, evidence has dispersed and response deadlines have shortened.

McKinsey, Navikenz, Shift Technology 2024