Arbitration Forums, Inc. (AF), the nation’s largest provider of inter-insurance dispute resolution services, reported that it resolved more than 477,000 inter-company claims disputes valued at over $2.2 billion in 2007, a new record.
Disputes leading to arbitration typically arise when insurance or self-insured companies believe their insureds are not at fault or if they disagree as to the percentage of liability or the amount of damages, Smith explained. More than 80 percent of inter-company arbitration disputes involve auto collisions.
W. Russ Smith, president and chief executive officer of AF, which has 4,000 carrier and self-insured members nationwide, said that the growing interest in arbitration programs could be attributed to the ease of use of electronic filing through the Internet and e-mail to further speed the arbitration process. He pointed out that nearly 90 percent of arbitration filings in 2007 were made electronically, almost double the percentage of just two years earlier.
Smith said AF’s most recent innovation, E-Subro Hub, expanded AF’s offerings beyond traditional arbitration services by providing members with a single web-based platform from which they can interactively issue and respond to subrogation demands, manage electronic demand packages as well as file and respond to arbitration cases.
“The heightened company focus on saving expense dollars coupled with the industry’s adoption of the E-Subro Hub will result in reduced cycle times and more efficient delivery of our services,” said Smith.
Source: Arbitration Forums, Inc.
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