Following recent changes in the regulation of reinsurance, contracts of reinsurance for Australian insurers must be governed by Australian law. However, Australia is a federation and laws vary between States and Territories. As two recent decisions illustrate, insurers should further specify which Australian jurisdiction governs the contract, and be aware of the implications that the choice of jurisdiction may have on their reinsurance arrangements.
Significant cases, legislation or articles referred to
- APRA Prudential Standard GPS 230 Reinsurance Management
- AIG UK Ltd & Ors v QBE Insurance (Europe) Ltd  QSC 308
- Insurance Act 1902 (NSW)
- Westport Insurance Corporation & Ors v Gordian Runoff Limited  NSWSC 245 (8 April 2009)
- HIH Casualty and General Insurance Limited (in liquidation) v RJ Wallace & Ors (2006) NSWSC 1150