Arbitration Forums Inc. said it is introducing a Web-basedprogram that will allow quick communication of insurers'subrogation claims that currently are sent through the U.Smail.

Geoff Engert, a spokesman for Tampa, Fla.-based AF, said thesystem would facilitate communications between insurance companies,third party administrators, self-insureds, collection operationsand other entities.

“Now they get subrogation demands through the mail–snail mailand it's paper-based. This will allow them to communicate throughour hub. It facilitates the demand process and allows them tocommunicate electronically,” said Mr. Engert.

AF's new subrogation service, which goes into effect Sept. 1, iscalled E-Subro Hub System. The company describes it as anelectronic clearinghouse for subrogation workflow between insurancecarriers and other parties involved in subrogation.

There is no fee for AF membership, but a $5 charge for eachsubrogation demand, Mr. Engert said. Subrogation claims are made bya carrier against a third party after an insured is paid fordamages for which the third party is responsible.

“The E-Subro Hub will transform a slow, cumbersome, paper-drivensubrogation process into a seamless, highly efficient electronicsystem that produces rapid settlements and reduces costs,” promisedD. Kay Smith, AF president and chief executive officer.

Users of the new subrogation technology will be able to send andreceive subrogation demands electronically, attach supportingdocuments (estimates, bills, photos, police reports, etc),automatically route demands to file handlers, negotiate online, andview and download online reports, AF said.

The E-Subro Hub requires no software to purchase or download.The technology enables users to interactively manage bothsubrogation demands and responses, access online reports thatprovide important management information, improve recovery, andenhance loss reduction opportunities.

Firms that need scanning of documents will be charged a fee byAF.

E-Subro Hub, AF said, is scalable to a company's current levelof automation, enabling it to be quickly and inexpensivelyintegrated into a user's current systems. The Hub features securitytechnology to ensure information is kept secure.

Ms. Smith added that while the E-Subro Hub will encouragesettlement, if necessary, filing arbitration will be as simple asclicking a button, as the E-Subro Hub will share the same Web-basedplatform as AF's arbitration services.

Mr. Engert said the system should result in insureds obtainingtheir deductible claims payment faster. Subrogation “on the autoinsurance side amounts to millions of transactions every year,” henoted.