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.
