Applicable law and jurisdiction in reinsurance contracts
The National Insurance Superintendence (SSN) has established that reinsurance contracts executed among local insurance companies and foreign reinsurers must be subject to Argentine laws and jurisdiction. This rule was issued within the powers granted to the SSN by Law 20,091 (the “Insurance Law”).
This means that, in case of litigation between local insurance companies and foreign reinsurers, the claim must be heard by Argentine courts that will apply Argentine laws. Nothing was established with respect to existing reinsurance contracts, or what might happen in case of further renewals of said contracts.
It should be noted that Article 162 of the Insurance Law establishes the freedom of the parties of reinsurance agreements and, consequently, the new rule would be against the mentioned rule established by the Insurance Law. Because of that, the local insurance market is still expecting the evolution and reception of this new disposition of the SSN.
For further information on this topic please contact Martín G. Argañaraz Luque