Discovery of Communications Between Insurers and Reinsurers
In today's complex work of insurance, many insurance risks are "reinsured" by a separate insurance carrier. In those instances, it is not unusual for insurers and reinsurers to have regular communications concerning the insured, and in particular, concerning matters about which they both have an interest. Most of the time, the insurer and reinsurer consider such communications to be confidential, and not subject to discovery. However, whether seemingly confidential communications between insurers and reinsurers is discoverable in litigation involving an underlying insured is not a clear cut question. Outside of Texas, there is a split of authority regarding the issue of discoverability of reinsurance communications. A recent order issued by the Northern District of Texas demonstrates that such communication can be discoverable if an insured can persuade the court that the sought after information is relevant to his or her underlying claims.
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