For years, arbitrators have discussed the benefits of neutral panels. Simply put, the concept is not new. A “few” years ago [enough said about the passage of time], Caleb Fowler, Bob Hall and Larry Monin outlined these benefits and offered themselves as a “pre-set” panel, as stated in their article, All-Neutral Arbitration Panels, XV Mealey’s Reins. Rpt. No. 24 at 23 (April 28, 2005). In the piece, they describe, in detail, how eliminating “partisanship” in the conduct of an arbitration allows arbitrators to focus the agenda, the discovery, and the decision-making process on a collaborative decision that reflects the expertise of all panel members.
Recently, a group of experienced arbitrators (Debra Hall, Larry Greengrass, Sue Grondine-Dauer, and I) revised AIRROC’s Dispute Resolution Procedure (DRP), inserting the neutral arbitration panel concept as an additional offering in a suite of options that AIRROC supports for cost-effective dispute resolution. In furtherance of this effort, (a) AIRROC’s Board of Directors agreed to offer this on the AIRROC website as an alternative for companies to consider, and (b) Debra, Larry and Sue created a website that presents both a list of Pre-set Neutral Panels and guidelines to conduct an expeditious arbitration. AIRROC’s website will soon link to this panel website so both will be available for anyone in the industry.
These changes to the DRP respond to recent complaints from insurers and reinsurers about how long it takes to choose an umpire. The delay is caused primarily (a) by the amount of time parties spend to negotiate an umpire selection process that eliminates real or perceived bias, and (b) by the difficulty finding an umpire who is available within a reasonable amount of time. Clearly, a list of pre-set neutral panels comprised of seasoned arbitrators can and will eliminate these delays and any perceived bias from the outset of the arbitration. Combined with the DRP’s time deadlines for key parts of the streamlined arbitration process, this neutral panel list is a useful tool for parties to avoid the delay and expense of putting together a panel that can move forward expeditiously and reach fair and unbiased decisions.
The Pre-Set Neutral Panel for Insurance /Reinsurance Arbitrations Procedure dated January 30, 2025, contains the guidelines for participation in and use of the neutral panel process; it is set forth at https://neutralarbitrations.com. Arbitrators, Larry Greengrass, Susan Grondine-Dauer and Debra Hall crafted the process, with input from other arbitrators. We hope it will prove useful to the industry, and that you will keep us posted if you use it and find it valuable.
In addition to the Neutral Panel Process, additional offerings through the AIRROC DRP will include Consultation, Evaluation and Resolution Services which will be described in detail in future communications.
