Private Law Theory

ABSTRACT
The idea of a harmonised reinsurance law is nearly a century old, but was resurrected a decade ago at the instigation of representatives from the reinsurance industry. The Principles of Reinsurance Contract Law (‘PRICL’) were produced by a group of international reinsurance law experts in cooperation with the International Institute for the Unification of Private Law (UNIDROIT), and advised by experienced practitioners from leading insurance and reinsurance companies.

The aim of the PRICL is to provide reinsurance markets with a uniform, clear, simple and balanced non-binding (‘private’) codification of commonly accepted business practices in international reinsurance. Reinsurance is a global business and reinsurance contracts frequently involve parties and risks in multiple jurisdictions. Only a few jurisdictions have developed a distinct body of reinsurance law (England, New York, Bermuda) and it is the reinsurance law of these jurisdictions that frequently dominates the ‘choice’ of law by the parties. But even English, New York and Bermudian reinsurance law contain aspects of considerable legal uncertainty, (potentially) leading to costly disputes. Disputes also arise because either one or even both parties have chosen a governing law that they are unfamiliar with and had no clear understanding how it would be operating in specific situations. Reliance on reinsurance market practices is framed by domestic law rules on contract interpretation and implication of terms. The PRICL seek to address these issues by providing uniform default rules that use standardised reinsurance terminology, together with commentary and illustrations for each rule. The anticipated economic benefits of the PRICL are reduced transaction costs and dispute resolution costs resulting from a fragmented legal landscape in an internationally operating market.

The PRICL were launched on 3 November 2025 at Lloyd’s of London with an event titled ‘PRICL Launch Event: Principles of Reinsurance Contract Law – Continuity, Consistency and Constructive Change’ and attended by insurance industry representatives, lawyers, regulators and academics. The following is a script of my speech.

Arnold-Dwyer, Franziska, PRICL and English Reinsurance Contract Law (November 1, 2025), Faculty of Laws University College London Law Research Paper No 14/2025.