Mediation hands parties the power to resolve disputes directly and outside a court but exactly who is given the power to settle and for how much can be a pivotal factor in mediation. This is especially pertinent to the insurance sector.
The ideal scenario in a mediation is that all the parties in attendance have “full authority” to settle the claim, including insurance representatives. After all, entering a mediation only to find you are negotiating with someone without the power to make a settlement can exacerbate tensions.
“Parties attending a mediation or conciliation meeting, who do not have a realistic level of authority to settle a matter on behalf of an insurer can cause frustration, delays and even risk the success of the process,” says JAMS International Panellist Charles Gordon.
