Which of the following is a function of insurance subrogation?

Subrogation is a key principle in insurance that allows an insurer to recover costs from a third party after it has paid a claim to its insured. This process occurs when one party, after compensating a loss to a policyholder, seeks to recoup those costs from the responsible party. In this context, the function of subrogation is essentially to enable the insurer to reclaim the amount it paid out for the claim, which helps maintain the insurer's financial stability and efficiency.

This principle not only benefits the insurance company by allowing it to recover losses but also serves the insured by ensuring that the party responsible for the damage ultimately bears the financial responsibility. Thus, subrogation is integral to the overall function of insurance as it helps in managing costs post-claim.

The other options do not accurately describe the function of insurance subrogation. Analyzing consumer trends relates more to market research rather than recovery of costs. Setting budgets pertains to financial planning within insurance operations, and establishing new policy limits is about underwriting practices rather than recovering losses after a claim has been paid.