Originally from Dispute Resolution Journal

The reinsurance industry uses non-neutral, party-appointed arbitrators in reinsurance disputes. The authors discuss this practice and suggest how to improve the process.

The first use of an arbitration clause in an insurance contract was, by most accounts, the one in the Insurance Company of North America contract in 1793:

And it is agreed, that if any Dispute should arise relating to the Loss on this Policy; it shall be referred to two indifferent Persons, one to be chosen by the Assured, the other by the Assurer, who shall have full Power to adjust the same; but in case they cannot agree, then such two persons shall choose a third; and any two of them agreeing, shall be obligatory to both parties.