Which of the following best describes the process of mediation in claims disputes?

The process of mediation in claims disputes involves a neutral third party who assists both the insurer and the insured in reaching a mutually satisfactory resolution. This mediator does not have the authority to make binding decisions but facilitates communication, helping the parties discuss their positions and find compromises. The aim of mediation is to settle disputes amicably and efficiently, while keeping the interests of both sides in mind.

This approach is designed to encourage cooperation rather than confrontation, often resulting in faster resolutions than would be possible through litigation or more adversarial processes. Mediation is typically less formal and can be more cost-effective than other forms of dispute resolution. In contrast, processes like arbitration or a court trial usually involve more structure and can impose binding decisions without the direct involvement of the parties in negotiation.