In the last twenty years, arbitration proceedings have been on the rise in disputes not only between direct policyholders and insurers (policy arbitrations) but also between insurers and reinsurers and between reinsurers and retrocessionaires (reinsurance arbitrations). Although there are differences between the two categories of arbitrations, there are more similarities than differences. This article reviews, primarily based on personal experiences of the authors, key areas of similarities and differences between the two categories of arbitrations. This article will consider only policies and reinsurance agreements that cover U.S. based risks.
By: David W. Ichel and Carlos A. Romero, Jr.