Self-Insured Membership

Self-Insured companies are increasing their use of inter-company arbitration to increase subrogation recovery and are realizing some unique benefits: Increasing subrogation recovery and reducing costs.

Benefits of Arbitration for Self-Insureds:

• Resolution of disputes takes only a fraction of the time compared to litigation. The time it takes from filing to hearing is usually less than 90 days.
• Dramatic reduction in legal cost/expense. There are no court costs, no legal fees and no membership fees — only a minimal filing fee.
• Protection from litigation. Once an agreement is signed, all participating companies must forego litigation and use AF's arbitration process to resolve loss disputes related to each program.
• Often low value subrogation claims are abandoned as their value does not justify the expense of litigation. The low costs of arbitration allows you to pursue all cases.
• As signatories to AF's programs, more than 5,100 insurance companies and self-insured are required to arbitrate settlement. The result is a significant cut in the abandoned subrogation claim rate for self-insureds.

AF is currently working individually with self-insured members to determine what training tools are needed to help increase participation in arbitration programs.