A degree in law or communications is a must for this prestigious role. You might even be required to have a master's in communication or business administration, too. Many people take to a position like this later in life; it's a popular choice for retired judges who still feel they have something to offer. Experienced attorneys sometimes transition to this type of work when they're younger, too.
An arbitrator or mediator is there to help two fiercely opposed sides of an argument reach some kind of closure and agreement. That might be between two people during a divorce, or an insurance company and a claimant after a claim has been made. These situations are usually stressful and emotional, and so a high degree of emotional intelligence is as important as practical skill when finding solutions. You need to be an excellent persuader in order to find a fair compromise.