Conquer the CAS Challenge 2025 – Your Ultimate Actuarial Adventure Awaits!

Alternative dispute resolution (ADR) techniques are methods used to resolve disputes without resorting to litigation, which can be time-consuming and costly. Mediation and arbitration are prime examples of ADR.

Mediation involves a neutral third party, the mediator, who facilitates a conversation between the disputing parties to help them find a mutually acceptable resolution. The mediator does not impose a decision but rather assists in the negotiation process. This approach encourages collaboration and may lead to a more satisfactory outcome for both sides.

Arbitration, on the other hand, involves a third party, the arbitrator, who listens to both parties and then makes a binding decision based on the evidence and arguments presented. This process is often more formal than mediation, resembling a court proceeding but usually conducted in a less rigid environment, making it a preferred choice for many disputing parties seeking a definitive resolution without going through the court system.

Other choices incorporate litigation, settlements, or trials, which are not classified as ADR techniques. These options typically represent more adversarial and formal means of resolving disputes, such as court procedures, instead of the collaborative and often more flexible nature of mediation and arbitration.