Jurisdiction(s):
United Kingdom

Key definition

Reinsurance definition

What does Reinsurance mean? Reinsurance is the transfer by an insurer (the cedant) of part of its insurance risk to another insurer (the reinsurer) under a separate contract, to manage exposure, protect capital and satisfy prudential requirements. While regulatory definitions exist (for example under Solvency II and UK financial services legislation), the term is chiefly a contractual and market expression developed through practice and case law. Key structures include: - Proportional reinsurance (such as quota share or surplus), where premiums, losses and expenses are shared at an agreed percentage. - Non‑proportional reinsurance (such as excess of loss or stop loss), which responds once the cedant’s retention/attachment point...

Arbitration in Insurance and Reinsurance: Agreements to Arbitrate, Clause Incorporation and Scope, Ad Hoc and Institutional Options, and Bermuda Form Arbitrations

Published by a LexisNexis Arbitration expert

Practice notes

Arbitrations arising from insurance and Reinsurance disagreements reflect many of the characteristics found in other commercial arbitration. This Practice Note outlines both ad hoc and institutional procedures for arbitrations within the insurance sphere. It further addresses Bermuda Form proceedings that can flow from ‘Bermuda Form’ policies, a distinct class of excess Liability insurance. References to ‘insurance’ in this Practice Note are to ‘insurance and reinsurance’ unless stated otherwise.

The Practice Note covers:

Agreements to arbitrate in the insurance context, institutional and ad hoc arbitration
Bermuda Form arbitrations

Agreements to arbitrate, institutional and ad hoc arbitration

Agreements to arbitrate

For arbitration to be used as a route to resolve a dispute, the parties to the insurance contract must either have agreed to refer the dispute or difference that has arisen to arbitration, or must agree, after the dispute has arisen, to arbitrate. It is necessary to establish that a valid agreement to arbitrate exists and that the dispute in question sits within its scope. Sometimes, parties may contest whether an agreement to arbitrate has been incorporated into the policy; such Disputes commonly occur in the insurance context...

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Ralph Morley

7KBW

Ralph has a broad practice across all areas of commercial law, including insurance and reinsurance, international arbitration, Admiralty and shipping, commercial disputes and professional negligence. In the insurance sector, Ralph has developed particular experience in property damage (including marine and non-marine risks) and business interruption policies, Bermuda Form mass tort liability insurance and political risk, acting for both policyholders and insurers. Ralph is ranked by the legal directories in insurance, commercial dispute resolution, shipping and professional negligence....

Web page updated on 21/05/2026

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