Protocol seeks to reduce the time and cost of resolving reinsurance disputes...
A new protocol has been implemented which is designed to increase efficiency in reinsurance disputes.
According to Lloyd's, the International Reinsurance Industry Dispute Resolution Protocol seeks to reduce the time and cost of resolving reinsurance disputes by offering an alternative to a court case or a lengthy arbitration if a disagreement should arise between reinsurer and client.
The Lloyd's bulletin stated that the protocol, which was developed by the International Institute for Conflict Prevention and Resolution (CPR) in conjunction with insurance companies and Lloyd's, will be a ‘statement of intent' to be included in any agreements up front which would detail the steps which would be taken should a dispute arise.
Paul Moss, head of claims at QBE and who was involved in drafting the protocol, said: “This protocol is a major step forward to complement and support the need for rigorous dispute management clauses to be incorporated within reinsurance agreements.”
“There is an increasing desire for companies and their reinsurers to seek ways to avoid unnecessary delays, financial burdens, animosity and uncertainties of arbitration outcomes in disputes. The costs of resolving disputes in the reinsurance market are getting ever more expensive in terms of direct costs, management time and in extreme cases reputation issues.”
