Arbitrations between insurance companies in claims disputematters rose almost 10 percent in 2006, according to a nonprofitinterinsurance dispute resolution services provider.

Tampa, Fla.-based Arbitration Forums Inc. hit a new recordresolving more than $2.2 billion in intercompany claims disputes in2006, reported D. Kay Smith, the firm's chief executiveofficer.

At the same time, the number of arbitration filings rose 9.3percent, totaling more than 480,000 cases, also a new record.

An Arbitration Forums study found that for every dollar acompany spent on intercompany arbitration in 2006, the return oninvestment was $41.67.

One half of arbitration filings in 2006 were madeelectronically, up from 17,000 in 2004, when Arbitration Forumsintroduced its first online filing program.

Ms. Smith attributed the growing interest in arbitrationprograms, in part, to the ease of use of the Internet and e-mail tofurther speed the arbitration process.

Disputes leading to arbitration typically arise when insuranceor self-insured companies believe their policyholders are not atfault or if they disagree as to the percentage of liability or theamount of damages, Ms. Smith explained in a statement. More than 80percent of intercompany arbitration disputes involve autocollisions, the firm said.

"Insurance companies and the self-insured are saving anincreasing number of expense dollars by choosing arbitration overlitigation as the means of resolving property and casualty claims,and new technology will generate even more significant savings andefficiencies," Ms. Smith said.

"The heightened company focus on saving expense dollars coupledwith the ease of electronic filing and an increased understandingof the benefits of arbitration programs will generate even moregrowth in the future," Ms. Smith added.

Founded in 1943, AF has a membership of more than 3,900 insurersand self-insureds nationwide.