A Tampa, Fla.-based insurance nonprofit says it “enhances” customer service and saves more than $700 million in litigation costs annually for the property-casualty insurance industry by resolving insurance claims disputes through arbitration.
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. More than 85% of inter-company arbitration disputes involve auto collisions, according to Arbitration Forums (AF).
AF resolved about 500,000 claims disputes amounting to almost $2.3 billion last year. In the past decade, AF resolved about 5 million disputes valued at almost $23 billion.
About 96% of the arbitration filings last year were made electronically, AF reported. The nonprofit said it expects its paperless systems will save nearly 30 million sheets of paper weighing more than 389,000 pounds annually. AF said it plans to expand E-Subro Hub, an electronic subrogation claims system for the subrogation process, which operated in 23 states last year.
Arbitration enables insurers to return deductibles to their policyholders faster, which reflects positively on customer service, according to W. Russ Smith, president and chief executive officer of AF.
“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,” Smith said in a statement.
Arbitration saves insurers money, improves customer service via IFAwebnews .
