Electronic Subrogation System Now Available Countrywide; Streamlined System Will Transform Slow Subrogation Process

TAMPA, Fla., July 13, 2011 /PRNewswire-USNewswire/ -- The final link in a nationwide electronic subrogation network is now complete, transforming the traditional time-consuming, paper-driven subrogation system with a streamlined electronic, paperless, document management and communication tool that will provide significant operational savings to the insurance industry.

The electronic subrogation system, called E-Subro Hub, will handle more than 500,000 demands valued in the billions of dollars in 2011 now that the system is available in all 50 states and the District of Columbia with the addition of six new states, effective today, according to the non-profit Arbitration Forums, Inc. (AF), which developed the system.  AF offers the service at no cost to participants.

The Tampa-based AF, the nation's largest provider of inter-insurance dispute resolution services, said E-Subro Hub significantly streamlines the subrogation process by enabling users to electronically send and receive subrogation demands, attach supporting documents, manage subrogation claims and electronically file intercompany arbitration where necessary.  

"The traditional subrogation system was ready to take a revolutionary step to transform its processes, and the completion of a nationwide E-Subro Hub is the fulfillment of that objective," said W. Russ Smith, president and CEO of AF.  

He reported that in 2010 nearly 115,000 subrogation demands valued at nearly $206 million were resolved by E-Subro Hub while operating in only 23 states.  

Smith noted that 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, he said.

"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," Smith said.

He said plans for E-Subro Hub include the addition of data integration, Subro-netting, electronic payment and electronic adjusting services for users.  

On an annual basis, AF projects the paperless system will save over 44 million sheets of paper weighing more than 586,000 pounds.

Founded by the insurance industry in 1943, AF is a membership-driven organization that exists to effectively and efficiently serve its over 4,400 members' recovery and resolution needs.  AF is the nation's largest arbitration and subrogation services provider, resolving some 500,000 disputes worth nearly $2.3 billion in claims each year.

SOURCE Arbitration Forums, Inc.

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