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Please allow me to explain why that is a good thing and an opportunity you should not let slip by. An increase in contingency fees translates into an exponential increase in net subrogation recoveries – something Matthiesen, Wickert & Lehrer, S.C. lawyers have been delivering for their clients since 1983. For clients who formerly experimented with utilizing in-house counsel, the increase in recoveries have far made up for the allocated expenses and overhead associated with that business decision. For clients who formerly were attracted to the illusion of lower contingent fee rates advertised by cut-rate third-party subrogation vendors and TPAs, they are amazed at how much money was literally being left on the table. It should be noted that not all subrogation vendors are equal. We work with some excellent vendors, but as cut-rate vendors continue to flood the marketplace, the good ones are becoming the minority. The dollars lost because claims with subrogation potential are referred to subrogation counsel mere weeks, days, or even hours before a statute of limitations or other deadline is about to expire, is literally incalculable, which is what makes the decision to avoid involvement of lawyers so speciously attractive. There is no accountant who can point to a ledger and document how much money you left on the table. Grading the success of your subrogation program — or assessing the subrogation result in a single claim — is one of the most difficult functions an insurance company can undertake.
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