In addition to our traditional subrogation services, we also offer Recovery Estimate services to carriers, and other risk-retention facilities.
This program provides that Avalon would apply a recovery estimate for all open subrogation assignments for a carrier, and the aggregate recovery estimate would be posted as a credit against claim reserves by the carrier.
The recovery estimate benefits are threefold:
The aggregate estimated recovery “credit” improves a carrier’s Surplus, to the extent of aggregate amount.
The carrier gains investment flexibility for the aggregate credit amount.
An Insurer’s RBC score is enhanced to extent of this credit.
We are very conservative with our recovery estimates, and historically our actual recoveries have been 110% of our aggregate estimated recoveries.