The Insurance and Reinsurance Dispute Resolution Task Force website contains the current and prior versions of the Procedures for the Resolution of U.S. Insurance and Reinsurance Disputes and Guidelines for incorporating the Procedures into insurance and reinsurance agreements. It also contains background on the development of the Procedures, a list of the current members of the Task Force, and a list of trade associations supporting consideration of the Procedures.
The Task Force began work in 1997 to address widely-held industry concerns that the arbitration process was not working as well as it could. Among the concerns expressed were the lack of a 'standard' set of procedures for conducting arbitrations, the lack of clarity regarding the scope of authority of arbitration panels, and the 'gamesmanship' that often surrounded the umpire selection process.
The Task Force is comprised of representatives from insurance companies, reinsurance companies, trade associations, and arbitration practitioners. The Procedures are the result of many hours of (sometimes heated) discussion among the Task Force members. All points of view were represented and considered to arrive at a consensus on best practices.
The Task Force published the first version of the Procedures in September 1999. All Task Force members believed that the Procedures were an important step forward in addressing the concerns that had been expressed. Leading industry trade associations encouraged their members to consider incorporating the Procedures into their reinsurance agreements, and many did so.
The Task Force stopped meeting following the publication of the 1999 Procedures, but there was acknowledgement that the group should reconvene at some point to review how well the Procedures were being accepted and whether any modifications should be made. In 2003, with the benefit of a number of arbitrations conducted using the Procedures, as well as the continued evolution of the arbitration process, the Task Force started to meet again. While there was some turnover in membership, the same industry segments were still represented and many of the original members remained on the Task Force.
The primary issue discussed by the Task Force during its 2003 meetings was the desirability of neutral panels - i.e., panels where none of the arbitrators knows which party appointed them. Many practicing arbitrators commented that under the traditional party-appointed approach, arbitrators ran the risk of becoming advocates rather than adjudicators, which made the process more confrontational. Concluding this was a legitimate concern, the Task Force reworked the panel selection process from the 1999 edition of the Procedures to allow for the selection of neutral panels. At the same time, the Task Force recognized that many parties would want to continue with party-appointed arbitrators, so the 1999 edition of the Procedures was retained and updated. The result is two updated sets of Procedures for 2004: one for Neutral Panels and one with Party-Appointed arbitrators.
Please note that all prior versions of the Procedures (1999 and 2004 Procedures, and 2004 Neutral Panel Procedures) will be maintained on this website because arbitration clauses may incorporate any one of the versions and visitors can be assured that this site will contain whichever version may be referenced.
At its final meeting in 2004, the Task Force agreed to survey its members in 2006 to see whether further updates and/or changes to the Procedures were necessary. As the number and complexity of arbitrations continued to increase, new issues arose, some of a practical and relatively minor nature, and others raising fundamental issues about how insurance and reinsurance arbitrations should be conducted.
In 2007, the Task Force reconvened, with some of the original members and the same industry segments represented, albeit reflecting industry consolidation and new participants. The Task Force met throughout 2008 and most of 2009. Over the past two years, the Task Force has discussed possible revisions to both the neutral and party-appointed arbitrator Procedures in response to issues raised by the industry; for example, the use of experts retained by panels and conduct of arbitrations under the Alternative Streamlined Procedures. While certain changes are reflected in the 2009 version of the Procedures, the Task Force decided that certain other issues raised and discussed were either outside the scope of the Procedures or that industry consensus had yet to be reached.
As in the past, the Task Force welcomes comments and suggestions from interested parties. Please submit them to information@arbitrationtaskforce.org. We will acknowledge receipt of all correspondence and retain all suggestions for future consideration.
The Task Force believes that the revised 2009 Procedures are an important step in preventing unnecessary friction in the arbitration process and providing parties with more certainty regarding what to expect from the process. The Task Force hopes contracting parties will consider incorporating these Procedures in their future contracts or, through a separate agreement, applying them to their existing relationships when arbitration becomes necessary. Parties should feel free to incorporate them, as written, in whole or in part, or with modifications appropriate to their unique situations.
Please direct your correspondence to information@arbitrationtaskforce.org. We will acknowledge receipt of all correspondence and will retain all suggestions for future consideration.
Eric Kobrick
Chairman, Insurance and Reinsurance Dispute Resolution Task Force
Footnote: While the Task Force gratefully acknowledges the administrative support provided by the Reinsurance Association of America (RAA), neither the RAA nor their members had any more input into the Procedures than any of the other Task Force members.
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