With a focus on resolution and not necessarily vindication, mediation is becoming an increasingly cost-effective tool to avoid litigation, an insurance company executive told an industry conference.
Cindy Khin, assistant vice president for insurance operations at MEDMARC Insurance Company, made her comments at the ACE-SCLA Claims Exposition and Conference presented by Claims Magazine and the Society of Claim Law Associates last week in Orlando, Fla.
Ms. Khin said that "mediation offers a less stressful and more comfortable setting for the parties to present their strengths and address their case weaknesses to help find a solution in the dispute."
At her company, Ms. Khin oversees medical device claim investigation and settlements, defense counsel selection and litigation management.
"Mediation also offers an opportunity to peek at a plaintiff counsel's strategy," she said. "In addition, it helps to calibrate money expectations."
Lack of patience ranks as a top reason mediation fails, Ms Khin said.
Keith Maurer, director of health care and insurance alternative dispute resolution services for the National Arbitration Forum, said early settlement is the best course for an effective mediation experience.
"As the case progresses, cost increases for both sides and parties become more entrenched," he said.
Mediation often fails because of a poor choice in a mediator or one side's failure to understand the other's negotiating style," he said.
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