Arbitration Forums, Inc. (AF) will conduct all two-party autocases online, in turn eliminating paper and saving time for itsmembers and the insurance industry.

On Oct. 13, 2009, the first paperless hearings were held inBloomington, Ill. and Tulsa, Okla. More than 60 volunteerarbitrators heard more than 500 two-party online auto cases.Participating companies will soon begin submitting evidence onlineto further streamline the process.

"The first hearings are a historic step in achieving the goalsof AF and the industry for an end-to-end electronicsubrogation/dispute resolution solution, saving the industryhundreds of millions of dollars each year," said W. Russ Smith, AFpresident and CEO.

In addition to this development, AF is continually expandingE-Subro Hub, a Web-based electronic communication and documentmanagement tool designed to simplify the subrogation process. AFprojects that the first phase of the E-Subro Hub system rollout maysave P&C insurers and self-insureds nearly $400 millionannually.

AF arrived at this figure by taking into account several costfactors, Mr. Smith said. Essentially the system takes time normallyassociated with certain clerical aspects out of the subrogationclaim processing equation. Users can now electronically send andreceive subrogation claims, attach supporting documents, managesubrogation claims, and electronically file inter-companyarbitration where necessary. These workflow enhancements translateto cost savings.

"As a membership-driven organization, AF continues to invest inways the industry can effectively and efficiently resolvesubrogation claims," said Smith.

An electronic, end-to-end subrogation claim process is anothermeans by which AF strives to fulfill industry needs. Recently, AFconducted extensive pilot testing of E-Subro Hub. The findingsindicated that the average time from filing a subrogation claim toclosing was 17.5 days using the system, reducing turnaround timesby more than 50 percent in many instances. The pilot test resultsalso pointed to improvements in customer service, as subrogationdemands were accepted in just 10.4 days on average, allowinginsurers to return deductibles to their policyholders faster.

If member companies cannot resolve a claim, one click moves thefile to arbitration where the dispute will be heardelectronically.

For more information about AF's arbitration and subrogationservices, visit www.arbfile.org/webapp/.

Source: www.iii.org