Arbitration is an Alternative Dispute Resolution (ADR) process used to resolve disputes outside the court system. Arbitration is when the parties to a dispute agree to let a neutral third partyan arbitratorhear the case and decide on a binding decision.Insurance arbitration relies upon an arbitrator (the neutral third party) to make an appropriate decision based on the specifics of a claim or case. Forprofit organization and world's largest provider of arbitration, mediation and other alternative dispute resolution (ADR) services.