Alternative Dispute Resolution (ADR) Program
When challenging situations call for a fair, proven alternative
In response to the 2005 hurricane season and again following the 2008 season, we implemented our Alternative Dispute Resolution (ADR) program to offer Zurich policyholders a fair, voluntary and cost-effective way to resolve disputed claims without costly and time consuming litigation. Zurich is the only carrier to set up an independent, private ADR program for our customers.
Zurich has enlisted the services of Kenneth R. Feinberg (formerly Special Master of the September 11th Victim Compensation Fund of 2001) to assist in the development and management of this program. But it's important to note that our ADR program is designed to supplement, not replace our normal adjustment process, which is still the fastest way to resolve most claims. ADR is triggered only when an impasse occurs during the course of the normal adjustment process.
Following both Hurricane Katrina in 2005 and Hurricanes Ike and Gustav in 2008, our ADR program helped those Zurich customers who used it get back in business more quickly. Over 1,000 claims were placed in the ADR program following Katrina, and most were resolved early in the process, never advancing to binding arbitration. Zurich received high praise from customers, distributors and the Departments of Insurance in the states where the ADR program was used.