Resolution of insurance disputes through arbitration and key issues

Insurance contract is frequently subject to disputes. Disputes are generally resolved through litigation. Lawsuits are relatively costly, involve complicated procedures, and take a long time to reach a result. As an alternative, we can consider utilizing the ADR (Alternative Dispute Resolution) system, which is an alternative dispute resolution method utilized in the United States and other countries. In terms of information imbalance, in insurance contracts such as household insurance, the arbitration clause in the terms and conditions that excludes court trials in the event of a dispute should be strictly viewed. However, in terms of the ideology of commercial law, which is to promote and speed up transactions, it is considered that it is time to consider actively resolving disputes in insurance contracts in the form of corporate insurance such as reinsurance through arbitration rather than through litigation In insurance, the ADR system can be utilized mainly in corporate insurance. The ideal alternative would be to resolve disputes through arbitration between the two parties. Among ADR systems, arbitration has the same effect as a final judgment, allowing disputes to be resolved quickly and finally. In cases where contracts are concluded on equal footing between parties in a commercial relationship, it is necessary to interpret them by focusing on the policy aspects of the principle of private autonomy and the activation of alternative dispute resolution methods. The burden on commercial entities due to the delay in trials caused by the recent surge in litigation cases should no longer be overlooked. In other words, in order to reduce the time and cost required for dispute resolution between commercial parties, it is believed that a change in perception is also necessary at the judicial policy level, such as recognizing the validity of optional arbitration clauses in relevant transaction terms. In particular, it is possible to make in-depth factual judgments by experts in each field through an arbitration institution with arbitration expertise, and it is expected to be an alternative to litigation in terms of litigation economy when a dispute arises. In this paper, we report that it is necessary to actively consider expanding the use of the ADR system for corporate insurance as an alternative to litigation, and we aim to establish a plan to activate the ADR system and establish a stable system through review of legal issues.