NU Online News Service, Sept. 25, 10:20 p.m. EDT
Arbitration Forums Inc. (AF) said it has developed a new Web-based system for insurance subrogation cases that will save its 4,000 member firms an estimated $460 million.
AF said the new system will enable users to electronically send and receive subrogation claims, attach supporting documents and integrate data.
Geoff Engert, AF director, said the system saves costs from the back office, copying and postage as well as clerical and adjuster costs.
Subrogation demands, he noted, involved "millions of communications" and the estimated $460 million savings is based on four million annual subrogation demands involving the back and forth of phone calls, letters, and documents. An average claim, he said, involves $3,700, "if you extrapolate the data it comes out to nearly $500 million in savings."
W. Russ Smith, president and chief executive officer of AF, the largest arbitration service organization in the country, said E-Subro Hub will dramatically slash costs and increase productivity while operating in a virtually paperless environment.
"When adopted by the industry, this Web-based communication, subrogation claim and document management system ultimately will create an end to end electronic subrogation/dispute resolution solution," Mr. Smith said at a recent meeting of the Property Casualty Insurers of America Claims Committee in Chicago.
Mr. Smith explained that E-Subro Hub significantly reduces cycle time and increases productivity by facilitating electronic communications, eliminating unproductive phone tag, sharing supporting documents instantly and enabling users to track the progress of all subrogation demands.
He noted that the E-Subro Hub will provide real-time status updates as well as action flags that alert the adjuster when demands require attention.
"E-Subro Hub allows carriers and self-insureds to manage their subrogation workflow more easily and maintain control of their processes, cycle times and subrogation-related expenses," he explained.
Mr. Smith said AF's system allows for submitting evidence electronically and hearing arbitration cases on-line.
"Electronic evidence submission and online hearings will save immense time, money and paper over the manual process of preparing paper case evidence, such as estimates, bills, photos and police reports, and shipping and re-shipping documents to AF," said Mr. Smith.
He also said that online hearings will allow for the hearing of cases remotely in locations with a secure Internet connection and give participants immediate access to arbitration decisions.
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