Inter-Insurance Arbitration Soared In '04: AF

According to Ms. Smith, more than 80 percent of inter-company arbitration disputes involve auto collisions.

AF said that filings by self-insured companies rose 3.4 percent in 2004 and the number of new signatories to AF programs rose 6.5 percent.

Ms. Smith said the growing interest in arbitration programs was attributable, in part, to the use of the Internet and e-mail, which further speeds the arbitration process.

AF offers high-speed electronic filing for small-dollar auto liability and damage disputes through its E-Speed Filing Program.

The company said that later this year it will introduce the E-Subro Hub, an electronic clearinghouse that will significantly speed up the subrogation claim process and further reduce costs.

AF said its Web-based subrogation technology will allow insurers, self-insureds, third party administrators and claims service organizations to streamline the subrogation process and interactively manage both demands and responses.

"Insurance companies and self-insureds are saving an increasing number of expense dollars by choosing arbitration over litigation as the means of resolving property and casualty claims, and new technology will generate even more significant savings and efficiencies," Ms. Smith said.

According to an AF study, for every dollar a company spent on inter-company arbitration in 2004, the return on investment was $38.44, Ms. Smith said.

"The heightened company focus on saving expense dollars coupled with the ease of electronic filing and an increased understanding of the benefits of arbitration programs should generate even more growth in the future," said Ms. Smith.

AF describes itself as the nation's largest nonprofit provider of inter-insurance dispute resolution services. Founded in 1943, AF has a membership of more than 3,700 insurers and self-insureds nationwide.