Arbitration Forums Launches Electronic Subrogation System

Not-for-profit Arbitration Forums, Inc. (AF), has develop its E-Subro Hub, a new electronic subrogation system. Initial users of the Web-based paperless document management and communication tool, called E-Subro Hub, are reporting that cases are frequently closed within days as opposed to weeks or months as in the past; printing and mailing costs have been eliminated; and expenses associated with preparing an arbitration filing have been reduced.

W. Russ Smith, president and CEO of AF says that the subrogation processes of insurance companies and self-insureds are at different stages of technology with information coming from a variety of platforms.

“Some participants still utilize paper and fax; others use e-mail only; while still others use e-mails with attachments,” Smith said. “At the same time, subrogation contacts at companies vary widely, so knowing who to contact is confusing. And the information flow is inconsistent, coming in on different platforms.”

Russ says that the industry has taken evolutionary steps to improve the subrogation process, such as using digital photos, electronic estimates, and electronic/paperless arbitration, but those pale in comparison to the benefits of a wholly integrated electronic subrogation system.

Smith says that E-Subro Hub allows participants in the system to process their subrogation demands and responses more efficiently and provide performance data.

AF projects that E-Subro Hub ultimately will save property/casualty insurance companies and self-insureds hundreds of millions of dollars annually by enabling users to electronically send and receive subrogation demands, attach supporting documents, manage subrogation claims, and electronically file intercompany arbitration where necessary.

E-Subro Hub, now available in 23 states and the District of Columbia, will be expanding into all 50 states in 2011. AF offers E-Subro Hub at no cost to participants.

Smith says that E-Subro Hub ultimately will provide data integration, Subro-netting, electronic payment, and electronic adjusting services to users.

E-Subro Hub also enables insurers to return deductibles to their policyholders faster, which reflects positively on customer service.

The E-Subro Hub, electronic evidence submission, and other initiatives, AF and its members lower their carbon footprint—annually saving 29.5 million sheets of paper, more than 540,000 kilowatts of energy, nearly 1.3 million pounds of carbon dioxide, and over 2,900 trees.

Founded by the insurance industry in 1943, AF is a membership-driven organization that exists to effectively and efficiently serve its over 4,300 members’ recovery and resolution needs. AF is the nation’s largest arbitration and subrogation services provider, resolving more than 520,000 disputes worth nearly $2.5 billion in claims each year.

Source: Arbitration Forums