A court has confirmed an arbitration award in a reinsurance dispute centred on the "follow the settlements" doctrine, bringing a protracted coverage battle between cedent and reinsurer to a close.

The ruling, reported by Insurance Business, leaves the arbitral outcome intact. The court declined to disturb the tribunal's findings, and the reinsurer's challenge to the award failed.

The case turned on one of the most contested principles in reinsurance law. Under a "follow the settlements" clause, a reinsurer generally must follow the cedent's good-faith settlement of an underlying claim, rather than relitigate the original loss.

What does the ruling change for practitioners?

The confirmation reinforces a familiar lesson for reinsurance counsel: arbitration clauses plus follow-the-settlements provisions push merits disputes toward tribunals, and courts will police only the outer limits of the award. Cedents who settle underlying claims in good faith gain a strong position. Reinsurers contesting a settlement face a narrow path — they must attack the award itself, not merely reargue the loss.

For brokers and coverage teams, the decision is a reminder to:

• document the good-faith basis of underlying settlements;
• draft follow language precisely, since it defines the scope of the reinsurer's obligation;
• treat arbitration awards as effectively final absent procedural defect.

The judgment closes the immediate dispute. Terms of the award itself remain as the tribunal framed them.