How should an insurer approach a dispute likely to escalate due to a large difference in estimates?

Using mediation to facilitate dialogue is a constructive approach for insurers facing a dispute that has the potential to escalate due to significant differences in estimates. Mediation involves a neutral third party helping both sides communicate and work towards a resolution that is acceptable to all. This method promotes understanding and collaboration, as it allows each party to present their viewpoint, clarify misunderstandings, and explore potential compromises.

This approach can often lead to quicker resolutions and can preserve the relationship between the insurer and the claimant. Mediation can also save time and resources compared to litigation, which can be costly and protracted. By actively engaging in mediation, the insurer demonstrates a willingness to find common ground and resolve the dispute amicably, which can ultimately be beneficial for all involved.