In coverage disputes between an insured and an insurer, it is not uncommon for the policyholder to pursue discovery of the insurer’s communications with its reinsurers regarding the claim. Insurers have become increasingly cautious about sharing information with reinsurers out of a concern that a court will find the communications discoverable or find that certain privileges were waived,1 leading to disputes between reinsurers and cedents over the reinsurer’s right of access to privileged information. This article will explore the historical context, competing interests, and recent developments in this vexing area of the law and offer insight regarding potential pitfalls and best practices for communicating with reinsurers.
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