A new online claims resolution system from America, which its creators claim will slash hundreds of millions of pounds of administration costs, is set for launch on the UK market.

Cybersettle.com enables defendant insurers to enter into the system three offers to settle the claim. The claimant's representative, usually a solicitor, also posts three possible claims.

If the two sides are within 30% of each other, then the system automatically finds the middle point and the settlement is agreed.

Cybersettle UK is chaired by ex-Aon director Antony Pinsent. He is flanked by ex-Marsh executive Tony Bolton, who is chairman of Cybersettle's international advisory committee.

Pinsent said: "We have spoken to lots of insurers in this country and they understand the dramatic cost reduction this can enable."

Cybersettle was launched in the US in 1998 with a staff of four. The company now has a workforce of 130 and its system is used by a similar number of insurers.

In America insurers pay an average of £17 to register a claim. If the claimant's solicitor agrees to use the system, the price rises to £50. Settlement of the claim costs the insurer £270.

However, Pinsent said the pricing structure for Cybersettle in the UK market has yet to be concluded.

"In the UK, you have fast-track claims, multi-track claims and Cybersettle can help resolve those efficiently," he said.

The system is expected to be up and running in the UK within three months.