What do insurers seek through the subrogation process?

In the context of insurance, subrogation is primarily designed to allow insurers to recover costs that they have already paid out on behalf of policyholders. When an insurer pays a claim, it may seek to pursue legal action against the responsible party or their insurance company in order to recover those costs. This recovery process is what subrogation entails, and its goal is to ensure that the insurer does not incur unnecessary losses by effectively passing the financial burden back to the entity that is actually liable for the damages.

By focusing on recovering paid claims, insurers can balance their financial obligations and maintain sustainable operations. This process also enables them to keep premium costs down and minimize risk of loss, as they are not simply absorbing the costs of every payout without recourse. Thus, the correct answer highlights the fundamental purpose of subrogation within the insurance framework.