A new protocol has been developed to ensure that reinsurance disputes are settled as quickly and cheaply as possible.

The International Reinsurance Industry Dispute Resolution Protocol provides the insurance industry with an alternative to a court case or a lengthy arbitration if a disagreement should arise between reinsurer and client.

It is effectively a 'statement of intent' designed to be included in agreements up front outlining a clear set of procedures to be followed in the event of a dispute.

The protocol (available at www.InsuranceMediation.org) has been developed by the International Institute for Conflict Prevention and Resolution (CPR) working with insurance companies and Lloyd's.

“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,” said says Paul Moss, head of claims at QBE and one of the architects of the protocol. “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.”