What is the role of the insurer in subrogation?

The role of the insurer in subrogation primarily involves taking over the insured's rights to pursue a claim against a third party. This process occurs after the insurer has compensated the insured for a covered loss. Essentially, once the insurer pays the insured for a loss, it can then step into the shoes of the insured to seek reimbursement from the party that caused the loss. This is a fundamental aspect of subrogation, as it allows insurers to recover the funds they have paid out for claims, thereby helping keep insurance premiums in check for all policyholders.

By exercising subrogation rights, the insurer can claim the amount they paid out from the responsible third party, which helps to align liability with responsibility. This not only promotes justice by ensuring that the party at fault ultimately bears the costs of the loss, but it also helps to maintain the financial viability of the insurance system.

Other roles mentioned, such as collecting premiums or managing policy underwriting, do not directly pertain to the subrogation process. Denying claims that exceed policy limits is also unrelated, as it deals with specific claim eligibility rather than the pursuit of recovery from another party after a claim has been paid.