A computerized network that enables insurance companies to settle disputes with one another electronically is now available nationwide, the system's developer, Arbitration Forums Inc., announced.
The network transforms a traditionally paper-driven process into a streamlined electronic system that saves time, money and paper. Founded by the insurance industry in 1943, the Tampa, Fla.-based non-profit is the nation's largest arbitration and subrogation services provider.
For consumers, development of the electronic network means faster return of deductibles. Subrogation is a process in which one insurer tries to recoup losses for a claim--including a customer's deductible--from another insurance company. Arbitration Forums said the electronic subrogation system, called E-Subro Hub, will handle more than 500,000 demands valued in the billions of dollars in 2011.
President and CEO W. Russ Smith said in a press release that about 115,000 subrogation demands valued at almost $206 million were resolved by E-Subro Hub last year while the system was operating in only 23 states.
Current users of the system report cases are frequently closed within days rather than weeks or months as in the past. E-Subro Hub also eliminates printing and mailing costs and reduces expenses associated with preparing arbitration filings. Now that the network is operational nationwide, Arbitration Forums projects it will save more than 586,000 pounds of paper a year.