It's usually the bigger claims that are handled by lawyers. In Ontario and many other jurisdictions in North America, court-connected mediation is now a standard part of the litigation process. Many litigated insurance claims are now being resolved through court-connected mediation. If a claim can be settled by the adjuster or if it goes into litigation, the insurance manager will not be calling on a mediator. However, there are claims which can't be settled by the adjuster but don't need to be litigated.
Mediation can be an excellent alternative in such cases.
Basically, there are many cases where a neutral mediator, having established rapport, respect and trust with both sides can help the parties move to a mutually satisfactory settlement. Usually a mediator or mediation firm convenes the mediation or is involved in the convening process. As a first step, someone has to initiate the mediation alternative - i.e. contact a mediator or mediation firm to pursue mediation as a possible process to use in that case. They may do that before having discussed mediation with other parties. For mediation to work well, it is essential that the mediator is seen by both sides as being neutral and impartial .