What is the role of Alternative Dispute Resolution (ADR) in insurance?

The role of Alternative Dispute Resolution (ADR) in insurance is to assist in settling disputes outside the traditional court system. ADR encompasses various methods, including mediation and arbitration, which facilitate negotiations between parties to reach a resolution without going through formal litigation. This approach often leads to quicker, less costly, and more amicable outcomes compared to court proceedings.

Utilizing ADR can benefit both insurers and insured parties by allowing for flexibility and tailored solutions to disputes, thus potentially preserving relationships that might be damaged in a more adversarial court setting. Since ADR is designed to provide alternative pathways for resolving conflicts, it aligns with the overarching goal of promoting efficiency and satisfaction in dispute resolution within the insurance sector.