The New (Semi) Confidential Arbitration Award
A significant number of reinsurance contracts, particularly treaties implicated in claims involving runoff operations, contain arbitration clauses but do not require that the arbitration be confidential. Nevertheless, many ceding companies and reinsurers alike continue to prefer the “traditional” approach: to conduct their arbitrations in private and treat the process and result as confidential. If that is the preference of the parties to a dispute, they ordinarily execute a confidentiality agreement to that effect and anticipate the entire arbitration, including the award itself, will remain confidential, even if the dispute ends up in court. Until fairly recently, the parties could have been confident that their expectations would be fulfilled.