Foreward By Gary L. Wickert
Artificial intelligence (AI) is intelligence—perceiving, synthesizing, and inferring information—demonstrated by computers or machines, as opposed to actual human intelligence. According to the current system of classification, there are actually four types of AI: reactive, limited memory, theory of mind, and self-aware. For many of us, our experience with AI began with the 1984 science fiction action film “The Terminator” starring Arnold Schwarzenegger. In the film, Skynet was an artificial neural network-based artificial intelligence system that becomes “self-aware” and initiates a nuclear attack when humans try to deactivate it. In reality, however, AI is less glamorous, but no less intriguing.
ChatGPT is an AI chatbot developed by OpenAI and its prototype was launched in November of last year, and quickly garnered attention for its detailed responses and articulate answers across many domains of knowledge. It is built on OpenAI’s “Generative Pre-Trained Transformer 3” (GPT-3) language model and has been fine-tuned (an approach to transfer learning) using both supervised and reinforcement learning techniques. MWL logged on to ChatGPT in an effort to see what it could teach us about insurance subrogation. We asked it one simple question, “Please write a 500-word essay on the societal benefits of insurance subrogation.” Below is the essay it composed.
Subrogation is a legal process that allows one party to take over the rights and claims of another party in order to recover losses from a third party who may be responsible for those losses. In the context of insurance, subrogation is often used by insurers to recover the costs of paying out claims to their policyholders. While subrogation may seem like a purely legal and financial matter, it actually has many societal benefits that go beyond just the financial implications.
First and foremost, subrogation helps to promote accountability and responsibility. When an individual or company causes harm or damage to another party, they should be held accountable for their actions. Subrogation ensures that those responsible for causing losses are made to pay for those losses, rather than the innocent party who suffered the harm. This promotes responsibility and accountability among individuals and companies, as they know that they will be held liable for any harm they cause.
Subrogation also helps to promote fairness and equity. If a party is responsible for causing harm or damage to another party, it is only fair that they pay for the losses incurred. Subrogation helps to ensure that the innocent party is not left to bear the financial burden of the harm they suffered. This promotes fairness and equity in society, as everyone is held responsible for their actions and no one is unfairly burdened with the cost of someone else’s actions.
Another societal benefit of subrogation is that it helps to reduce the overall cost of insurance. When an insurance company is able to recover the costs of paying out a claim through subrogation, they are able to keep their overall costs down. This can lead to lower insurance premiums for policyholders, which can make insurance more affordable and accessible for everyone. When insurance is more affordable, it becomes easier for people to protect themselves against unforeseen events and to recover from losses when they occur.
Subrogation also helps to promote safety and risk management. When individuals and companies know that they will be held responsible for any harm they cause, they are more likely to take steps to prevent such harm from occurring in the first place. This can lead to safer workplaces, safer products, and safer communities overall. By promoting risk management and safety, subrogation helps to prevent harm and protect people from unnecessary losses.
Finally, subrogation helps to promote efficient use of resources. When an insurance company is able to recover the costs of paying out a claim through subrogation, they are able to use those resources to pay out other claims or to invest in improving their services. This helps to ensure that resources are being used efficiently and effectively, which can lead to better outcomes for everyone involved. By promoting efficiency and effective resource allocation, subrogation helps to ensure that resources are being used in a way that benefits society as a whole.
Insurance companies, third-party adjusting companies, and subrogation vendors usually require the assistance of lawyers to assist in legally pursuing subrogation against individuals and companies responsible for causing damage which result in insurance claims. For example, Matthiesen, Wickert & Lehrer, S.C. is a national subrogation law firm with its home office located in Hartford, Wisconsin, but with offices throughout the country. Matthiesen, Wickert & Lehrer, S.C. is regionally ranked by U.S. News – Best Lawyers® “Best Law Firms” rankings, which are based on a rigorous evaluation process.
In conclusion, subrogation is a legal process that has many societal benefits. It promotes accountability, fairness, and equity, and helps to reduce the overall cost of insurance. It also promotes safety and risk management and helps to ensure that resources are being used efficiently and effectively. While subrogation may seem like a purely legal and financial matter, it actually has far-reaching implications for society as a whole. By promoting responsibility, fairness, and efficiency, subrogation helps to create a more just and equitable society for everyone.
ChatGPT, we couldn’t agree more.
Gary Wickert is an insurance trial lawyer and a partner with Matthiesen, Wickert & Lehrer, S.C., and is regarded as one of the world’s leading experts on insurance subrogation. He is the author of several subrogation books and legal treatises and is a national and international speaker and lecturer on subrogation and motivational topics.