On April 1, 2010, Arbitration Forums, Inc. (AF) will expandE-Subro Hub, a paperless Web-based subrogation system, to includetwo of the largest states in the subrogation market.

AF says the move into California and Pennsylvania represents asignificant increase in the market dissemination of its subrogationprogram, which is designed to allow carriers and self-insureds tomanage their overall subrogation workflows more effectively whilereducing related costs.

The pilot testing that AF conducted last year in Massachusetts,Maryland, North Carolina, Delaware, Virginia, West Virginia, andthe District of Columbia revealed potential cycle time andproductivity improvements as a result of implementing the program.According to AF, E-Subro Hub facilitates electronic communication,eliminating unproductive phone tag, in turn making it possible forusers to share supporting documents almost instantly.

In 2009, the average time from filing a subrogation claim todemands being accepted was 19.2 days using E-Subro Hub, AF said.Payments were received shortly thereafter, reducing turnaroundtimes by more than 50 percent in many instances. Insurers were ableto return deductibles to their policyholders faster, whichreflected positively on customer service.

The E-Subro Hub system rollout will save P&C insurers andself-insureds millions of dollars annually, AF noted. The possiblesavings can be attributed to the system enabling users toelectronically send and receive subrogation claims, attachsupporting documents, manage subrogation claims, and electronicallyfile intercompany arbitration where necessary.

A non-profit, member-driven organization serving the P&Cinsurance industry, AF offers E-Subro Hub at no cost toparticipants. On an annual basis, AF resolves more than 520,000disputes worth nearly $2.5 billion in claims.