Subro $ and Sense

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Subrogation Dollars and Sense

Outsourcing recovery services places responsibility with experience and takes the guesswork out of determining the combined allocated and unallocated cost. As recovery ratio improves (dollars recovered ÷ dollars paid), the net improvement can easily be measured.

NSS has a history of returning 20 percent of the property dollars referred for subrogation and 40 percent of the automobile dollars referred to us. This performance significantly exceeds all industry benchmarks. The illustration below demonstrates the increase in net cash flow as recovery ratio improves. This illustration assumes $100 million in paid claim, prior allocated and unallocated recovery expense of 23 percent and prior recovery ratio of 8 percent. The graph tracks the increased annual net dollars returned, even if total costs have modestly increased.