What term describes the process of resolving an insurance contract dispute through an objective third party?

The term that describes the process of resolving an insurance contract dispute through an objective third party is arbitration. In arbitration, both parties to the dispute present their cases to an impartial arbitrator who listens to the evidence and arguments from both sides, then makes a binding decision. This process is generally more formal than mediation and serves as an alternative to litigation, which can be lengthy and costly.

Arbitration is particularly advantageous in insurance disputes as it usually results in a quicker resolution and can provide a level of expertise in the decision-making process, especially if the arbitrator has a background in insurance matters. Unlike mediation, where the mediator helps facilitate a conversation between the parties to reach a mutually acceptable solution without making a formal decision, arbitration leads directly to a binding conclusion that both parties must adhere to. This makes arbitration a favored choice in many contractual disputes, including those in the insurance sector.