"At a time when New York City is grappling with billion-dollar budget deficits, it is more important than ever that we find creative ways to save City dollars,” Thompson said. “If our Cybersettle demonstration project is successful in expediting claims, it will help us achieve savings.”

“Cybersettle provides a reliable mechanism to resolve claims quickly and efficiently by providing a secure place online where parties can settle their disputes confidentially by comparing offers and demands in the blind,” said Charles Brofman, Cybersettle’s president and CEO. “To date, 83,000 transactions resulting in more than a half billion dollars in settlements have been facilitated by the Cybersettle method.”

The new measure is a demonstration project, a short-term, carefully planned, pilot exercise designed to test and evaluate the feasibility and application of an innovative product, approach, or technology not currently used by the City. Over the next two years, the Comptroller will observe and analyze the effectiveness and efficiency of the project.

An average 24,000 claims are filed against the City each year. The new system works like this: Shortly after a claim is filed, the Comptroller’s Bureau of Law and Adjustment will enter the information into Cybersettle. These claims – approximately 9,000 a year - will involve sidewalk, school, roadway, city property, traffic device, motor vehicle, recreation and personal injury cases. Cybersettle will then notify plaintiffs’ attorneys of the City’s intention to negotiate and request any pertinent documentation.

In these cases, Claims Adjusters will enter offers – which cannot be seen by plaintiffs - into Cybersettle. Plaintiffs’ attorneys can then submit corresponding demands – which cannot be viewed by the City - through Cybersettle. If a demand and offer overlap, a settlement is reached and Cybersettle will inform the parties.

Cybersettle currently is used by insurance carriers, attorneys, third party administrators and corporations to settle claims faster, more efficiently, and less costly than by standard methods.

Established in 1998, Cybersettle facilitates high-speed, confidential claim settlements by comparing monetary offers and demands via secure web technology. To date, Cybersettle has processed more than 83,000 transactions, facilitating more than $500 million in legal settlements. The system is used by 100,000 attorneys and 10,000 insurance claims adjusters, representing over 1,900 claims offices worldwide.

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