Subrogating a claim Ã¢â‚¬“ the sometimes lengthy process by which an insurer that has paid a loss, seeks to recover the loss amount from another party who is legally liable for it Ã¢â‚¬“ is about to become more streamlined now the final link in a nationwide
electronic subrogation network is complete.
The web-based paperless system, called E-Subro Hub, will transform a traditionally slow subrogation process and provide
significant operational savings to the insurance industry.
According to Arbitration Forums, Inc. (AF), which developed the system, E-Subro Hub will handle more than 500,000 demands valued in the billions of dollars in 2011 now that it is available in all 50 states and the District of Columbia.
In 2010, nearly 115,000 subrogation demands valued at nearly $206 million were resolved by E-Subro Hub while operating in only 23 states.
AF noted that E-Subro Hub saves time by enabling users to electronically send and receive subrogation demands, attach supporting documents, manage subrogation claims and electronically file intercompany arbitration where necessary.
According to W. Russ Smith, president and CEO of AF, current users of 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.
E-Subro Hub also enables insurers to return deductibles to their policyholders faster, which reflects positively on customer service. Smith noted:
Ã¢â‚¬Å“Already, E-Subro Hub has vividly demonstrated to participating carriers and self-insureds that the electronic system can manage their subrogation workflow more effectively, reduce subrogation-related expenses and lower cycle times.Ã¢â‚¬
AF offers the service at no-cost to participants. It predicts the paperless system will save over 44 million sheets of paper weighing more than 586,000 pounds annually.