It is becoming increasingly critical that financial institutions ensure their consumer and corporate banking customers are able to access their accounts with the highest reasonable security, using a process that is very straightforward and approachable.
A. Subrogation is an insurance term that refers to the right of an insurer to bring an action in the name of its insured. For example, it allows the customer’s insurance company to sue the person or organization that allegedly caused the customer’s loss or damage (e.g., the alarm installer or monitoring station). The amount of the lawsuit depends on how much the insurance company has indemnified (i.e., paid to) its insured (i.e., the customer) on the insured’s claim. In effect, the insurance company is seeking reimbursement from the person or organization that allegedly caused the loss or damage. The insurance company “steps into the shoes” of the customer and can take advantage of any means available to the insured to recover from third parties who caused the loss.