On April 1, 2010, Arbitration Forums, Inc. (AF) will expand E-Subro Hub, a paperless Web-based subrogation system, to include two of the largest states in the subrogation market.

AF says the move into California and Pennsylvania represents a significant increase in the market dissemination of its subrogation program, which is designed to allow carriers and self-insureds to manage their overall subrogation workflows more effectively while reducing related costs.

The pilot testing that AF conducted last year in Massachusetts, Maryland, North Carolina, Delaware, Virginia, West Virginia, and the District of Columbia revealed potential cycle time and productivity improvements as a result of implementing the program. According to AF, E-Subro Hub facilitates electronic communication, eliminating unproductive phone tag, in turn making it possible for users to share supporting documents almost instantly.

In 2009, the average time from filing a subrogation claim to demands being accepted was 19.2 days using E-Subro Hub, AF said. Payments were received shortly thereafter, reducing turnaround times by more than 50 percent in many instances. Insurers were able to return deductibles to their policyholders faster, which reflected positively on customer service.

The E-Subro Hub system rollout will save P&C insurers and self-insureds millions of dollars annually, AF noted. The possible savings can be attributed to the system enabling users to electronically send and receive subrogation claims, attach supporting documents, manage subrogation claims, and electronically file intercompany arbitration where necessary.

A non-profit, member-driven organization serving the P&C insurance industry, AF offers E-Subro Hub at no cost to participants. On an annual basis, AF resolves more than 520,000 disputes worth nearly $2.5 billion in claims.