ON-LINE SETTLEMENT: Market greets third entrant.Cybersettle launches.

The on-line claims settlement market will greet a third entrant next month when Cybersettle.com launches in the UK.

Cybersettle, the UK subsidiary of a US parent company which has dealt with more than 40,000 claims since it was founded in August 1998, is aimed at insurers and solicitors.The confidential site allows insurers to make three 'sealed' offers which are electronically matched with the claimant's 'sealed' demands.

When a match within 30% is found, both sides are notified that the claim has settled.

Insurers wishing to use Cybersettle pay a 25 registration fee and a further 75 if the claimant engages in the process.

A graduated fee - 75 for claims under 5,000, 150 for those of between 5,000 to 15,000 and 250 for claims above 15,000 - is paid by the insurer if the claim settles.

The site is 128-byte secure socket layer encrypted to ensure that offers remain confidential to avoid prejudice if the claim fails to settle.

If the matter is not resolved, the company will produce a part 36 offer if requested.

Cybersettle.com president Charles Brofman said the company was also considering offering a link-up with a mediation service.

He said cybersettle was not itself established to act as a mediator or arbitrator but to 'create a bridge' for both sides which would take the 'aggression and posturing' out of negotiations.

He said it would also help claims to settle more quickly because insurers could post offers at any time, 'even weekends or Christmas day' and claimants could respond when it was convenient for them.

He added that the US site had shown that most insurers usually paid less than the maximum they were prepared to offer and claimants usually received more than the minimum which they were prepared to accept which made it a 'win, win' for all parties.

The site - which has yet to finalise its URL for the UK - will be in direct competition with WeCanSettle.co.uk, launched last month, and www.esettle.co.uk, part of umbrella legal IT company Judicium.Sue Allen