Mediation - A Rival To Arbitration In Reinsurance Disputes?

By Peter Mann and Raymond Giblett

Key Point

• Reinsurers must be fully informed about all aspects of the dispute resolution process before they choose to include clauses restricting a party to any particular means of dispute resolution.

It has been said that arbitration "antedates all the former legal systems".¹

. Originally used by merchants and traders in medieval times, arbitration's growth in the last 15 years has hinged on the business community's recognition that it provides a flexible and effective alternative to costly and time-consuming litigation. However, despite this, there is at times a perception that arbitration is increasingly imitating traditional court procedure, and recognition that the courts often recommend or require mediation prior to a court hearing.² As a result, business is increasingly opting for alternative means of dispute resolution such as mediation and expert determination.