It is often puzzling and difficult for foreign reinsurers to navigate through Chinese legal frameworks on reinsurance contracts, especially since there are relatively fewer regulations to offer guidance on reinsurance contracts compared to the extensive regulations on direct insurance.
Moreover, since the reinsurance business often involves small groups of close acquaintances, it is often the case that the parties neglect the wording of reinsurance contracts.
During the past five years, the Chinese courts and arbitration institutions handled massive disputes related to reinsurance contracts.
Those cases facilitated legislation in the reinsurance sector and aroused attention towards more careful wording of reinsurance contracts.
Based on our practice and experience, we list several essential provisions of reinsurance contracts under PRC law as follows.
Authored by Zhan Hao <zhanhao@anjielaw.com> , Zhou Yanghui <zhouyanghui@anjielaw.com>, Zhou Liumin<zhouliumin@anjielaw.com> at AnJie Law Firm