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

Nearly 520,000 claims disputes valued at more than $2.4 billion were resolved in 2011—a new record, according to Arbitration Forums Inc.

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

"Companies are increasingly focused on controlling their expense dollars, and arbitration offers a proven, cost-effective way of generating 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 come about when insurers disagree about fault, or the percentage of liability or amount of damages.

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

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

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

Special Reports /

Inter-Insurer Disputes Resolved Using Arbitration in 2011 Sets Record

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