Claims adjusting can be a contentious activity. As we assist claimants in dealing with their losses per the provisions of their insurance policies, certain aspects of these policies or the final determination of the claim amount and details can be called into question by the insured. Even if an adjusted claim is based on deep experience, precise financial analysis, and up-to-date data on realistic replacement or repair costs, an insured may still dispute the amount with the insurer—and with Crawford & Company.
A claims dispute may be settled by litigation initiated by the insured or insurer, and such cases can cost all parties a significant amount of time, effort and money in order to fully resolve the issue. Increasingly, alternative methods of dispute resolution (vs. litigation) are being adopted as ultimately more effective means of arriving at a consensual claims settlement.
One popular approach to resolving contested claims is alternative dispute resolution (ADR), which does not involve the court system. ADR usually includes a combination of several activities, including neutral third-party evaluation, negotiation, resolution meetings, mediation, and binding arbitration.
To understand ADR better, you can read Crawford CEO Jeffrey T. Bowman’s article on this subject in his article “Alternative Dispute Resolution for Claims: Lessons from Three Storms”, an installment in his regular column in Claims Management magazine.