Arbitration Forums Cutting User Fees

NU Online News Service, Jan. 6, 3:09 p.m. EST

Arbitration Forums Inc. announced it is reducing filing fees and other charges over the course of 2010 that will save insurance companies and self-insureds $4 million.

Tampa, Fla.-based AF said the giveback, effective Feb. 1, is part of an ongoing program to benefit the insurance industry by further reducing arbitration system costs and simplifying participation in AF's programs.

"This $4 million dividend from AF is concrete proof of our commitment to provide the industry with the most efficient, cost-effective services to satisfy its dispute resolution needs," said W. Russ Smith, AF president and chief executive officer.

In 2009, AF said it saved the insurance industry more than $1 million by eliminating the fee to notify parties to a dispute that an arbitration action has been submitted by members who use its online filing service.

AF added that also on Feb. 1 it will change its fee structure to simplify costs. By streamlining fees and not charging for the first deferment or reschedule request associated with a case, AF projected it will save the industry an additional $2.7 million.

The company describes itself as the nation's largest membership-driven organization providing arbitration and subrogation services.

AF counts a membership of over 4,300 insurers and self-insureds for whom it resolves more than 520,000 disputes worth nearly $2.5 billion in claims each year. The company has been in business for 69 years.