Arbitration is a formal process in which a panel of attorneys hears evidence and renders an opinion, which could be binding or non-binding. Insurance arbitration relies upon an arbitrator (the neutral third party) to make an appropriate decision based on the specifics of a claim or case.Arbitration is the process of using a third party to settle a dispute instead of taking the case to court. A collection of the most recent US international arbitration decisions is available here. Any type of dispute, claim or controversy arising out of business dealings with any FINRA brokerage firm1 can be resolved in mediation or arbitration.