Law and jurisdiction in insurance and reinsurance contracts (Asia Pacific)

While not always given priority during placement negotiations, governing law clauses, jurisdiction clauses and arbitration clauses are often the most important provisions in any insurance or reinsurance contract. This is because the governing law will determine the meaning and effect of all of the other terms of a policy. While underwriters and brokers may consider they have a good understanding of the terms of cover being bound, this understanding may often be founded on principles they are familiar with (such as English law). However this may be misconceived, where a different selection of governing law dictates the actual effect of the terms of cover, which may be very different from the underwriter’s intentions.

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