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Claims lifecycle · Stage 08 of 08 · Recovery

AI subrogation software that finds the recoveries claims teams miss

Every file screened for subrogation and salvage, with the evidence and the draft demand attached.

In short

Hesper AI is an AI claims resolution platform for P&C carriers, TPAs, and MGAs. Its recovery agents screen every claim file for subrogation and salvage potential, not only the files an adjuster happens to flag, then rank each opportunity with the evidence behind it and draft the demand or arbitration package. Your recovery team keeps the pursue-or-waive decision.

Book a demo of Hesper's recovery agentsSee all eight lifecycle stages
2.3MSubrogation demands filed through Arbitration Forums in 2025, alongside 1.1M arbitration disputesSource: Arbitration Forums
$51.6BRecovered through salvage and subrogation on auto lines alone in 2021Source: Journal of Insurance Regulation (NAIC), 2023
120 daysHow far ahead of the statute of limitations Arbitration Forums advises filing, where possibleSource: Arbitration Forums FAQ

Why do carriers leave subrogation money on the table?

Subrogation review usually depends on someone noticing a liable third party while they work the claim, or on rules keyed to a few coded fields such as cause of loss. The evidence that proves liability rarely lives in those fields. It sits in police and fire reports, repair invoices, contractor agreements, photos, and recorded statements that nobody reads with recovery in mind.

Timing makes it worse. By the time a file is reviewed for recovery, evidence may be gone and deadlines may be close. Arbitration Forums advises filing at least 120 days before the statute of limitations where possible, and limitation periods vary by state. Every missed recovery shows up as claims leakage: money paid that could have been recovered.

What does Hesper's subrogation agent do on each file?

  1. Reads the whole file: first notice notes, police and fire reports, photos, statements, estimates, invoices, contracts, and leases.
  2. Identifies potentially liable third parties and the theory of recovery, such as an at-fault driver, a contractor's workmanship, a product failure, or a tenant or landlord obligation.
  3. Weighs recoverability: how strong the liability evidence is, what the file shows about the other party, and the dates that drive deadlines (date of loss, notice dates) so your team can confirm the limitation period.
  4. Ranks open opportunities by likely recovery and evidence strength, each with citations back to the page, photo, or statement it came from.
  5. Drafts the demand letter and evidence package, and prepares arbitration filing packages for your team to review and submit.
  6. Flags salvage potential on total losses so it is not left for the end of the claim.

Why does the evidence trail matter for recovery?

A recovery demand is only as strong as the evidence behind it. Because Hesper builds one sourced evidence file per claim, the same record that supported the coverage position and any investigation also supports the subrogation demand. Nothing is re-gathered, and every assertion in the demand points back to its source.

That is the difference between a recovery flag and a recovery file. Most tools stop at the flag. Hesper hands your team the file.

Does it work with our claims system and recovery process?

Yes. Hesper connects to your claims system of record (Guidewire, Duck Creek, Majesco, and others) through its API and can pick up a claim at any stage, including mid-stream for recovery screening. There is no rip-and-replace. Your recovery unit, outside counsel, or subrogation vendor keeps working the way they do today, starting from a ranked, evidenced list instead of a hunch.

Recovery is the last of eight stages Hesper runs. See how intake and triage set up the file, or all eight stages on the claims lifecycle overview.

What does Hesper do, and what does your team decide?

Hesper's agentsYour team
Screens every file for subrogation and salvage potentialDecides whether to pursue or waive
Ranks opportunities with cited evidenceConfirms liability theory and limitation dates
Drafts the demand letter and evidence packageApproves and sends the demand
Prepares arbitration filing packagesChooses arbitration, litigation, or settlement, and files

What does the output look like?

Homeowners water damage claimIllustrative example, not a customer file
Loss
Kitchen water damage from a failed supply line
Recovery theory
Workmanship or product failure: supply line installed by a plumbing contractor months before the loss
Liable parties
Plumbing contractor (invoice in file); fitting manufacturer (part number in adjuster photos)
Evidence
Contractor invoice, adjuster photos of the failed fitting, insured's recorded statement
Dates
Date of loss and first notice captured; limitation period to confirm for the loss state

Evidence cited

  • Invoice names the contractor and the install date
  • Photo shows the fitting separated at the compression joint
  • Statement confirms no one worked on the line after install

Recommended next action: Preserve the failed fitting, notify the contractor's liability carrier, and send the drafted demand for review.

Frequently asked questions

What is AI subrogation software?

AI subrogation software reads claim files to find losses where another party is liable, so the insurer can recover what it paid. Rules-based tools look at a few coded fields; AI can read reports, photos, invoices, and statements, rank the opportunities, and draft the demand. Hesper does this on every file, with the evidence attached.

Which lines of business does Hesper screen for subrogation?

Auto, property, workers' compensation, and general liability claims, in personal and commercial lines. The recovery theories differ by line, from at-fault drivers in auto to contractor or product liability in property and third-party liability in workers' comp, and the agent adapts its review to each.

Does Hesper decide whether to pursue a recovery?

No. Hesper finds, ranks, and documents the opportunity and drafts the demand. Your recovery team or counsel decides whether to pursue, waive, settle, arbitrate, or litigate, and confirms the limitation period for the loss state.

Can a TPA run subrogation screening across client programs?

Yes. Hesper can screen files across client programs, and every recovery file carries its own sourced evidence trail, which makes client reporting and audits easier to support.

How is Hesper priced?

Pricing is scoped to your book: lines of business, claim volume, and which agents you deploy. Book a demo and we'll walk through the economics for your claims operation and give you a real number.

Other stages of the claim

01FNOL intake02Claims triage01-08All eight stages

Book a demo of Hesper's recovery agents

A 30-minute walkthrough on your claim types: how a file gets screened, ranked, and drafted.

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