Arbitration Boosts Efficiency: Alliance
By Michael Ha
Atlanta
Property-casualty insurers use of arbitration as an alternative to the tort system can create more efficient and equitable disposition of claims, according to an industry expert speaking on behalf of the Alliance of American Insurers.
David Narigon, senior vice president of Employers Mutual Casualty Co. in Des Moines, Iowa, made the observation during the National Association of Insurance Commissioners Consumer Protection Working Groups public hearing on arbitration clauses in contracts.
"Arbitration, as well as other forms of alternative dispute resolution, minimizes the costly and time-consuming elements of jury trials, including discovery and trial preparation expenses," said Mr. Narigon.
In this way, he argued, arbitration streamlines the process, saving time and providing all parties involved with more control over the process and eventual outcome. He also explained that p-c insurers use such clauses in auto insurance policies covering physical damage appraisals and to resolve personal injury protection claims.
"The availability of these agreements is beneficial for both policyholders and insurers because they provide an alternative avenue to resolve disputes and are less costly than litigation," Mr. Narigon added.
Reproduced from National Underwriter Edition, March 17, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.