Arbitration Resolved Some 500,000 Inter-Insurer Claims Disputes Valued At More Than $2 Billion in 2010, Arbitration Forums Reports

TAMPA, FL,  March 7 – Arbitration Forums, Inc. (AF), the nation’s largest provider of inter-insurance dispute resolution services, resolved nearly 500,000 claims disputes valued at close to $2.3 billion in 2010, said W. Russ Smith, president and chief executive officer of AF, which has some 4,400 carrier and self-insured members nationwide. 

He also reported that over the last decade, AF resolved nearly five million disputes valued at nearly $23 billion.

Smith noted that the not-for-profit’s arbitration services are saving the property/casualty insurance industry more than $700 million in litigation costs annually through programs that effectively resolve insurance claims disputes.

He said that 96 percent of the arbitration filings in 2010 were made electronically — double the percentage of just a few years earlier.  On an annual basis, AF projects its paperless systems will save nearly 30 million sheets of paper weighing more than 389,000 pounds.

Smith also pointed out that arbitration enables insurers to return deductibles to their policyholders faster, which reflects positively on customer service.

“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,” said Smith.

Disputes leading to arbitration typically arise when insurance or self-insured companies believe their insureds are not at fault or due to disagreements over the percentage of liability or the amount of damages, Smith explained.  Over 85 percent of inter-company arbitration disputes involve auto collisions.

In addition, he said that AF continues to expand E-Subro Hub, an electronic subrogation claims system that increases the productivity and efficiency of the subrogation process.  The E-Subro Hub operated in 23 states during 2010.

E-Subro Hub significantly streamlines the process by enabling users to electronically send and receive subrogation demands, attach supporting documents, manage subrogation claims and electronically file intercompany arbitration where necessary.  AF offers this service at no cost to its members.

Founded by the insurance industry in 1943, AF is a membership-driven, not-for-profit organization that exists to effectively and efficiently serve its over 4,400 members’ recovery and resolution needs.