A NEW dispute resolution service is targeting the insurance industry claiming it can potentially save up to 75% of legal costs by removing the adversarial and lengthy nature of conventional litigation.
Centre for Justice director Anthony Hurndall – who as been working on the concept for three years – told Post that it is already in discussions with two insurers – including a significant international player – and that he hoped others would come on board.
The CfJ uses a combination of mediation and assessor-led case appraisal to help both sides reach a binding decision – without the need for claimant and defendant representation.
Its model uses mediation in the first instance, but if this is not successful the CfJ appoints an independent assessor to work through the case with both sides before coming to a decision that is legally binding.
Mr Hurndall told Post that he was a big fan of mediation but understood that the insurance industry had been reticent to embrace it as fully as some sectors because there is no guarantee both sides will reach an agreement.
However, he said that because the CfJ would use an independent assessor in cases where mediation failed, and that their decision would be legally binding, insurers could be assured of certainty in its model.
“There is no gamesmanship with the assessors, they simply talk to both sides and look at the evidence and reach their decision,” added Mr Hurndall.
The CfJ currently has 15 assessors including four experienced insurance litigators on its books, and has identified other recruits for when its caseload increases.
Mr Hurndall added that he thought the CfJ process would take a maximum of two to four months per case.
Post Magazine 1/8 January 2009