Arbitration Forum Pilots Subrogation Via Web

NU Online News Service, March 15, 2:09 p.m. EST?Arbitration Forums Inc., Tampa, Fla., said this fall it will begin piloting a new Web-based service to improve the efficiency of subrogation claims processing and reduce costs.[@@]

The Electronic Subrogation Demand/Response Processing System (?E-Subro HUB') product administered by Arbitration Forums will allow companies to streamline the process and interactively manage their subrogation claims?both demands and responses?while cutting costs dramatically, AF said.

"The current method of resolving subrogation demands is very costly to the industry both in time and expenses," said D. Kay Smith, president and chief executive officer of AF. "AF is providing an electronic solution to these subrogation problems."

Ms. Smith said the current paper-intensive subrogation process of letters and phone calls is plagued by time consuming delays as adjusters must keep checking the status of a claim and deal with duplicate demands and incomplete/delayed responses.

According to Ms. Smith, the average cost to process a subrogation demand is conservatively about $80 and insurance companies can reduce the cost of processing subrogation demands to a small fraction per claim through the interconnectivity of the ?E-Subro HUB' program.

AF said the ?E-Subro HUB' will sharply reduce processing time, eliminate paper files and diminish errors.

All transactions will be electronically based, allowing for the instantaneous exchange of documents. Companies with limited electronic means will be able to utilize the Web site, www.arbfile.org, for their transactions. AF will also offer an additional service that will convert their paper into electronic documents.

AF projects the program will handle at least 100,000 transactions by the end of 2005. AF describes itself as the nation's largest nonprofit provider of inter-insurance dispute resolution services with a membership of more than 3,500 insurers and self-insureds nationwide.

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Arbitration Forum Pilots Subrogation Via Web

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