A property/casualty insurance claim organization is calling for the expansion of a Web-based subrogation system that it says performed well in pilot projects.
The E-Subro Hub was developed by the non-profit insurance claims organization Arbitration Forums, Inc. (AF), which says that it dramatically increases the productivity and efficiency of the subrogation process.
Pilot testing of E-Subro Hub in Massachusetts and Mid-Atlantic has convinced the group that the system should be made available nationally beginning with California, Pennsylvania, and Texas followed by most states east of the Mississippi in 2010.
AF said it has no plans to charge for the use of the E-Subro Hub system.
AF projects that phase one of the system rollout would save property/casualty insurance companies and self-insureds $406 million annually by enabling users to electronically send and receive subrogation claims, attach supporting documents, and manage subrogation claims.
AF said that the pilot tests showed E-Subro Hub reduces cycle time and increases productivity by facilitating electronic communications, eliminating unproductive phone tag, sharing supporting documents instantly, and enabling users to track the progress of all subrogation demands.
The average time from filing a subrogation claim to closing was 17.5 days using E-Subro Hub in the pilot test states, reducing turnaround times by more than 50 percent in many instances.
The pilot tests also found improvements in customer service, as subrogation demands were accepted in just over 11 days on average, allowing insurers to return deductibles to their policyholders faster.
“The impressive test results have established that the E-Subro Hub allows carriers and self-insureds to manage their subrogation workflow easier, allowing them to more effectively manage their subrogation processes, cycle times, and expenses,” said W. Russ Smith, AF president and CEO. “We are pleased that the industry’s leading claim executives agree that these results warrant the program’s prompt expansion.”
AF is a provider of inter-insurance dispute resolution services. Founded in 1943, AF has a membership of more than 4,000 insurers and self-insureds nationwide.
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