The U.K. Court of Appeal has held that an arbitration clause commonly found in London market excess of loss reinsurance treaties does not prohibit the appointment of insurance or reinsurance lawyers to an arbitration panel. The clause at issue provides that, "[u]nless the parties otherwise agree, the arbitration tribunal shall consist of persons with not less than ten years' experience of insurance or reinsurance." The Court reversed an order of the U.K.'s High Court of Justice, Commercial Court, which held that a lawyer who had over ten years of experience in insurance and reinsurance disputes did not qualify for appointment to the panel under the clause because he did not have experience in the insurance or reinsurance "industry." On appeal, the Court held that nothing in the clause itself restricted the pool of candidates to "trade arbitrators," and that the clause need not be interpreted as such simply because it was drafted by a "trade body." The Court instead emphasized that the "practical and legal aspects of insurance and reinsurance are so intertwined that both market professionals and lawyers who have specialised in the field for many years are commonly appointed as arbitrators" in matters involving such disputes. Thus, unless the parties have some special reason for excluding lawyers as eligible candidates—in which case they can expressly state as such in the contract—the Court held that lawyers experienced in the field of insurance or reinsurance are naturally qualified to serve as an arbitrator under the clause.
Allianz Ins. PLC v. Tonicstar Limited, [2018] EWCA Civ. 434 (Commercial Court).
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