NU Online News Service, Jan. 31, 10:53 a.m.EST 

Nearly 520,000 claims disputes valued at more than $2.4 billionwere resolved in 2011—a new record, according to Arbitration ForumsInc.

The nation's largest provider of inter-insurance disputeresolution services says it is saving the industry more than $700million in litigation costs annually.

"Companies are increasingly focused on controlling their expensedollars, and arbitration offers a proven, cost-effective way ofgenerating those savings while enhancing customer service," says W.Russ Smith, president and chief executive of Arbitration Forums(AF), in a statement.

Disputes typically arise from automobile accidents and comeabout when insurers disagree about fault, or the percentage ofliability or amount of damages.

The Tampa, Fla.-based nonprofit founded in 1943 has about 4,400carrier and self-insured members nationwide. The services allowinsurers to return deductibles to policyholders quicker, saysSmith.

AF says it is also saving paper. About 98 percent of arbitrationfilings were made electronically via its E-Subro Hub system.Annually, AF says its paperless system will save more than 49million sheets of paper weighing about 642,000 pounds.

AF says eight of the 10 largest auto insurers now use E-SubroHub.