AF arrived at this figure by taking into account several cost factors, Mr. Smith said. Essentially the system takes time normally associated with certain clerical aspects out of the subrogation claim processing equation. Users can now electronically send and receive subrogation claims, attach supporting documents, manage subrogation claims, and electronically file inter-company arbitration where necessary. These workflow enhancements translate to cost savings.

"As a membership-driven organization, AF continues to invest in ways the industry can effectively and efficiently resolve subrogation claims," said Smith.

An electronic, end-to-end subrogation claim process is another means by which AF strives to fulfill industry needs. Recently, AF conducted extensive pilot testing of E-Subro Hub. The findings indicated that the average time from filing a subrogation claim to closing was 17.5 days using the system, reducing turnaround times by more than 50 percent in many instances. The pilot test results also pointed to improvements in customer service, as subrogation demands were accepted in just 10.4 days on average, allowing insurers to return deductibles to their policyholders faster.

If member companies cannot resolve a claim, one click moves the file to arbitration where the dispute will be heard electronically.

For more information about AF's arbitration and subrogation services, visit www.arbfile.org/webapp/.

Source: www.iii.org