The start of a new year always offers a natural pause — a moment to reflect on what worked, what didn’t, and what we want to accomplish moving forward. This applies both personally and professionally, especially in industries like insurance where progress often depends on taking an honest look at how we arrived where we are today.
When we look back at the evolution of subrogation, it’s clear the industry has advanced in meaningful ways, yet many workflows still resemble the processes of the mid-1990s. Over time, the P&C industry shifted from treating subrogation as an afterthought to recognizing it as a meaningful revenue stream. That shift was driven by specialization, centralized operations, expanded education, and the introduction of early technology tools. These were important steps — but incremental.
The familiar quote often attributed to Einstein, “Insanity is doing the same thing over and over again and expecting different results,” captures the challenge perfectly. Strong subrogation performance ultimately depends on two principles: maximize recoveries and minimize expenses. To do that, we must rethink the tools and processes in place today. As we look to 2026 and beyond, three areas stand out as catalysts for meaningful improvement.
1. Claims Data: The Foundation for Better Outcomes
Granular, high-quality claim data is no longer optional; it’s the backbone of modern subrogation success. When structured and complete data is captured early in the claims process, several opportunities emerge:
- Improved identification rates: Automated systems can flag subrogation potential earlier and more accurately.
- Competitive negotiating advantage: Specialists can leverage historical settlement trends, liability indicators, and contextual information to resolve claims more effectively.
- More persuasive arbitration contentions: Strong data inputs produce strong outputs, especially in written arguments.
Achieving this level of quality begins with thorough investigations by front-line adjusters and continues through the subrogation specialist’s ability to resolve claims efficiently. As carriers embrace increasingly data-driven strategies, the organizations that invest in structured, reliable data will outperform those relying on legacy inputs and manual review.
2. Agentic AI: Expanding the Subrogation Specialist’s Capabilities
AI has moved from a futuristic concept to an essential tool for operational performance. In subrogation, its value lies not in replacing specialists but in amplifying their effectiveness.
Agentic AI systems can:
- Automate repetitive administrative tasks
- Summarize large volumes of claim data
- Predict likely settlement outcomes
- Generate content for demand packages
- Interact directly with counterparties or their systems
Imagine an AI agent that automatically consolidates all relevant documents, drafts a complete demand package, exchanges it with the opposing carrier, and enters negotiation already understanding the probable settlement range. Recovery cycles would shrink dramatically, costs associated with arbitration would decline, and specialists could focus on strategy rather than manual prep work.
AI can do more than make work easier — it can redesign how subrogation gets done.
3. Platform Automation: Moving Beyond Claims-System Constraints
Subrogation teams have traditionally been tied to the claims platform. While this made sense when systems were built around linear workflows, the limitation became clear: enhancements or improvements for subrogation rarely rise to the top of IT priorities.
Modern subrogation platforms break this dependency by offering:
- Automated workflow steps
- AI-driven decision support
- Real-time data exchange
- Configurable rules that don’t require IT releases
This level of automation drives both speed and cost savings. Looking ahead, carriers will increasingly resolve simple, low-severity subrogation claims fully automatically. These “no-touch recoveries” will allow specialists to concentrate on complex claims where their experience and judgment truly matter.
A New Year — and a New Path Forward
As we enter a new year, the message is simple: meaningful improvement requires meaningful change. The subrogation industry has made progress, but achieving the next level of performance means embracing better data, leveraging agentic AI, and unlocking automation previously constrained by legacy systems.
By adopting new tools and approaches, carriers can accelerate recoveries, reduce expenses, and empower subrogation professionals to operate at their highest value.
Here’s to a successful year ahead — one where we stop doing things the same way while hoping for different results.