There is a long-standing debate in alternative dispute resolution (ADR) circles, particularly in the mediation community, about whether industry knowledge and expertise are necessary for a neutral to be successful in resolving disputes. In insurance and reinsurance disputes, this is particularly important because of the terms of art and customs and practices of the industry. This article discusses the importance of industry expertise when acting as a neutral in an insurance or reinsurance dispute.

The Pros and Cons of Industry Expertise in ADR. Whether industry expertise is necessary for a neutral to have success in helping to resolve a dispute is a hotly contested question. Mediation purists believe that a good mediator can learn enough about the dispute and the relevant industry during the course of the mediation and that industry experience is not necessary for success. Much like judges, mediation purists believe that a good mediator can manage any dispute because mediation skills, like judicial skills, apply across every type of dispute in every type of industry.