Claims Club: Mediators told to emphasise service to claims professionals

He said: "There has been a failing in terms of mediators to help claims professionals answer the question, ‘what is in it for me?'"

Citing research from Professor Elizabeth Stokoe from Loughborough University, who analysed conversations between members of the public phoning mediators, he continued: "Mediators are skilled at putting people off from using mediation. And they are doing that by discussing the voluntary nature of the process, that the mediator is neutral, and not on anyone's side.

"What they are failing to do is explain what it can do for the person that is making the inquiry. We are doing the same with claims professionals. We are failing to make it clear what we can do for them."

Hesketh acknowledged that senior people within claims departments might appreciate the value in early settlements achieved through alternative dispute resolution, or other solutions.

"But does that get down to the people at the chalk face, to the people handling the claims? Are they appreciating the early release of the reserve; the reduction in the legal spend; the shortened life cycle of the claim; the improvement in customer satisfaction - whether it is the insurer or the insured?"

Hesketh outlined other hindrances to the take up of mediation including the fact that a handful of "star mediators" tend to be very busy, at the expense of the majority in the field.

He said: "There are many people training as mediators every year, but they are getting fewer cases, so it is a catch 22. They get better with more experience; but they are not getting that experience."

Another hindrance was identifying the cases that could benefit from mediation rather than a joint settlement meetings: "For example where there are multiple defendants, and a mediator can do more than one mediation simultaneously; Where there are tensions in the legal teams; or a JSM has failed," he added.

Finally Hesketh questioned whether mediation has changed with the times since it was introduced to the UK insurance market.

"The model that was taught 20 years ago is the same that is taught now. But litigation has changed beyond recognition in that time, but has the mediation community kept up?" he concluded.

"Are we asking you - the claims professionals - what you want and what you need? Do we have to have a full day of mediation? Does there always have to be a lawyer present? Can you have an hourly rate mediation? There is a whole range of things, and I don't think these questions are being asked by the mediation community to you the [potential] purchasers of the service."