What method is used to resolve disputes between an insurer and an insured regarding a claim?

Arbitration is the method used to resolve disputes between an insurer and an insured regarding a claim because it involves a formal process where an independent third party, the arbitrator, is appointed to review the evidence and make a binding decision. This method is often outlined in the insurance policy and can be a more efficient and cost-effective alternative to litigation. Unlike litigation, which can be lengthy and public, arbitration is typically a private process and can be quicker, providing parties with a definitive resolution without the need for court involvement.

In the context of insurance claims, arbitration helps streamline the resolution process, allowing both parties to present their cases in a structured environment. This can be particularly beneficial in the insurance industry, where timely resolution of claims is crucial for customer satisfaction and maintaining trust between insurers and insureds.