PRINCIPLES OF REINSURANCE CONTRACT LAW: BETWEEN TRADITION AND LEGAL CERTAINTY IN A CHANGING GLOBAL ORDER
PRINCIPLES OF REINSURANCE CONTRACT LAW: BETWEEN TRADITION AND LEGAL CERTAINTY IN A CHANGING GLOBAL ORDER

Summary/Abstract: Reinsurance contracts have evolved significantly, transitioning from trust-based ‘gentlemen’s agreements’ to complex legal instruments featuring heightened risk exposure. This transformation is a consequence of the global expansion of the reinsurance market, the influx of new participants, and the increasing significance of reinsurance for financial stability. Reinsurance, however, continues to be unregulated at the national level and is predominantly governed by negotiated terms and established customs. This ‘pick-and-mix’ contractual approach now generates considerable legal uncertainty, particularly in cross-border transactions. To address these challenges, this paper examines the development of the Principles of Reinsurance Contract Law (PRICL), a non-binding soft law framework intended to enhance legal certainty. The PRICL drafters focused on prevailing customs systematization and offering clear contractual guidelines, while maintaining party autonomy through this opt-in mechanism. The paper concludes by analysing the legal avenues for PRICL contract incorporation, bearing in mind the constraints imposed by international private law.

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