Insurance disputes usually go to arbitration; Now, insurers may have found a better way

SIMC Specialist Mediator and WhiteFern Managing Director K. Anparasan runs a niche practice dealing with reinsurance-insurance disputes in commercial matters. Over the years, mediation in insurance disputes has gone up. “It has gained traction,” says Anpa. “Most insurers and reinsurers have realized the savings, not just in terms of time and costs, but it also saves commercial relations.”

Watch the full interview or read the interview transcript below. We thank Anpa for sharing his views.

Well, let me start by saying that I have started my own practice Whitefern LLC since February 2018. It’s been 2 and a half years. And this journey that I’ve embarked on has been very enriching. I’ve set up this niche practice dealing with reinsurance-insurance disputes in commercial matters. And this journey that I’ve started has now brought me into the mediation arena as well, not just in terms of court mediations, I think. I’m (also) doing a lot of international mediation these days.

Q: Can you recall a case you mediated?

So it was a cross border dispute. I think the claimant, though is a Singapore company, the Managing Director was based in Taiwan, so he couldn’t travel. So he was in Taiwan and the defendant was based in the Philippines.  The challenges of Zoom hearing or rather, Zoom appearances was a challenge for me because it was my first virtual mediation.

But both me and George Lim (co-mediator) surmounted the challenge. It went on till 6am. The stamina, I think, we needed the perseverance, not just us but the parties as well. Can you imagine at 2 – 3am we are still on Zoom with the parties, one in Taiwan, and one in the Philippines. It was a huge challenge but it was a very good experience co-mediating with Mr George Lim and I feel that that particular mediation has taught me a lot of things in terms of the takeaway from, how it is like to co-mediate.

I was absolutely amazed by SIMC’s support, not just in terms of the technical support, the team that went through the mediation until 6am. In terms of technical support, although we had one party in Taiwan, one party in the Philippines, it was seamless when we moved away from the main room to the private caucus, hardly any technical glitches. So I’m amazed at the support that was provided by SIMC and the team.

Q: What is the value of mediation for insurance disputes?

Well, in insurance disputes, I think there are many types of insurance disputes. A dispute between a reinsurer and insurer, insurer and an insurer, insurer and insured, insurer and a third party. So these are the sort of disputes which had gone for arbitration in those days but now, I am encouraging, whenever I’m on board, the parties, both reinsurer and insurer should go for mediation.

There was this big dispute that I did (as counsel). Quantum was in excess of $55 million, it involved a fire and there were four parties. So essentially, that dispute involved insurers because the insurer had paid out and was trying to recover as against other insurers. So this was a big dispute which was resolved at SIMC with George Lim as the mediator. And what was a takeaway was all the insurers there were literally, because some of the parties there were insurers, about eight to nine top insurers in Singapore who came together, and they decided to go into a private caucus with Mr George Lim. And surprise, behold, at 7pm, they came to an understanding and a resolution. So that is a takeaway for insurers that if you put your mind to it, no matter how big a dispute, it can be resolved.

Well, I would say the pick-up rate for mediation in insurance disputes has gone up in recent years. It has gained traction. Most insurers and reinsurers have realized the savings, not just in terms of time and costs, but it also saves commercial relations.

So these benefits of mediation, I personally am pushing this through, and it is basically gotten a lot of good feedback from insurers and reinsurers.