What is the primary goal of arbitration in the context of insurance claims?

The primary goal of arbitration in the context of insurance claims is to settle disputes. Arbitration serves as an alternative dispute resolution process designed to resolve conflicts between the insurer and the insured without resorting to litigation. This process allows both parties to present their cases to a neutral third party, known as an arbitrator, who then makes a binding decision that both sides agree to follow.

Arbitration is particularly valuable as it can be quicker and less costly than going through the courts, which benefits both parties by providing a more streamlined resolution to their disputes. By establishing a final outcome through arbitration, it helps maintain a productive relationship between insurers and policyholders and promotes fairness in resolving claims.

While other options may touch on aspects related to the insurance industry, they do not reflect the essential purpose of arbitration, which is centered on resolving disputes efficiently and effectively.