The subrogation process primarily benefits whom?

The subrogation process primarily benefits the insurer recovering costs. This is because subrogation allows the insurer to pursue a third party that may have caused the loss after they have paid the insured for their claim. Once the insurer has compensated the insured for the damages, they retain the right to seek reimbursement from the party responsible for the loss. This process helps insurers recover the funds expended on claims, thereby reducing their overall costs and helping maintain lower premiums for policyholders.

The benefits to the insurer in this process are significant, as it allows them to mitigate losses and hold the responsible parties accountable without negatively impacting the insured’s financial situation following a claim. Meanwhile, the insured has already been compensated and is not directly involved in the pursuit of recovery, which highlights why the primary benefit leans towards the insurer.