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

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

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

AF's new subrogation service, which goes into effect Sept. 1, is called E-Subro Hub System. The company describes it as an electronic clearinghouse for subrogation workflow between insurance carriers and other parties involved in subrogation.

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

“The E-Subro Hub will transform a slow, cumbersome, paper-driven subrogation process into a seamless, highly efficient electronic system that produces rapid settlements and reduces costs,” promised D. Kay Smith, AF president and chief executive officer.

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

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

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

E-Subro Hub, AF said, is scalable to a company's current level of automation, enabling it to be quickly and inexpensively integrated into a user's current systems. The Hub features security technology to ensure information is kept secure.

Ms. Smith added that while the E-Subro Hub will encourage settlement, if necessary, filing arbitration will be as simple as clicking a button, as the E-Subro Hub will share the same Web-based platform as AF's arbitration services.

Mr. Engert said the system should result in insureds obtaining their deductible claims payment faster. Subrogation “on the auto insurance side amounts to millions of transactions every year,” he noted.

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