United States: Arbitration Clauses Will Continue To Dominate In Reinsurance Contracts

Sun, 01/05/2020 - 13:29
by Mike Knoerzer of Mondaq

Insurers to consider arbitration as an effective strategy in 2020.

Insurers and insurance attorneys have a love-hate relationship with arbitration in insurance and reinsurance contracts. Generally, they love arbitration about as much as they love the last result in the last arbitration they had.

Having said that, arbitration is favored over court litigation in reinsurance contracts and we will continue to see this in 2020. One reason for this is arbitration clauses also are more likely than not to be found in insurance contracts where the parties are companies from different countries. Arbitration under a neutral arbitration framework, perhaps with special rules about the neutrality of the arbitration panel, provides comfort to both parties that there will not be a "home court advantage" for either party.

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