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CCarr
Canada
1200 Posts |
 Posted - 04/30/2003 : 10:30:58
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I find this fascinating while at the same time troubling, and truly a very clear sign of how things are changing.
Are you aware of how a vendor can "factor" a receivable / invoice? It could be any kind of contractor or body shop, who is pressed for cash flow and sells their 'invoice' as a receivable to a "factoring" company. Insurers would see this often enough, receiving demands for payment from a factoring company who had bought a vendor's invoice; at a discounted price but was collecting full dollar from wherever the account was payable.
Well, that concept has come into the 21st century in a much braoder concept. Subrogation Partners Inc., put out a press release on 04/23/03 announcing the launch that will focus exclusively on purchasing portfolios of insurance industry subrogation claims. "The criteria for this subrogation portfolio purchase includes a valuation process that employs highly sophisticated computer modeling techniques ....".
"Subrogation Partners Inc., is a nationally focused, independent subrogation claims administration company recognized as one of the insurance industry's primary outsource solutions for auto and property related subrogation recovery ....".
Every insurer utilizes adjusters to do subrogation files, every larger insurer has a subrogation department within their claims department. What happens to them now, as this newest 'widget' catches on?
This is no longer an insurance claims related process, but simply a financial transaction; at something less than 100% of anticipated recovery rates. Normal "factoring" charges for invoices range from 5% to 20% of the factored amount.
Aside from the money behind www.SubroPartners.com, it would be interesting to know what or whose vendor fingers or claims type of people will pursue the subrogation potential in the sold claim files.
Please recognize this as a major incursion into the "traditions" of a typical claims operation. |
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katadj
USA
315 Posts |
Posted - 04/30/2003 : 11:47:39
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| If you wish to view the above link, use ( http://www.subropartners,com) |
Edited by - katadj on 04/30/2003 11:47:59 |
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Ghostbuster
476 Posts |
Posted - 04/30/2003 : 21:01:17
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| A collection agency...how low brow can we go? It used to be, (back when Christ was a PFC), that subro was were a field adjuster with health problems would go until his/her retirement. It was like the 'Nursing Home' of claims. But this is sick concept. Why can't we do the same to the executives functions? Since when did they stop being a useless and disposable waste of resources. |
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ChuckDeaton
USA
373 Posts |
Posted - 05/01/2003 : 07:18:03
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| There have been companies that specialize in subro identification and collection for a percent for years. Crawford & Co runs one such operation out of Tulsa. |
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tomgriffin56
USA
88 Posts |
Posted - 05/06/2003 : 15:10:06
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| This seems to be going for the mainstream cashflow industry market. These people do "factoring" i.e. going for any income-producing stream, be it a mortgage, lottery, annuity or whatever. Factoring is what these outfits sell to the maases who go for their seminars as a main moneymaker. Don't even ask me how I know some of these things. |
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"Factoring" receivables - comes to subrogation
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