Best Reinsurance Lawyers in Arlesheim

About Reinsurance Law in Arlesheim, Switzerland

Reinsurance in Arlesheim operates under Swiss federal law, with supervision and market standards set at the national level. Arlesheim is situated in the canton of Basel-Landschaft, in the Basel region, a hub for complex industrial and life sciences risks. Whether you are a cedent based in or operating from Arlesheim, a Swiss-domiciled reinsurer, or a foreign reinsurer serving Swiss clients, your activities are shaped by Swiss insurance supervision rules, contract law, and widely used international market practices.

Swiss reinsurance is characterized by a high degree of contractual freedom, strong prudential oversight, and a business-friendly environment. The Swiss Financial Market Supervisory Authority FINMA licenses and supervises Swiss reinsurers and Swiss branches of foreign reinsurers. Most contract issues are governed by the Swiss Code of Obligations, while solvency and reporting are governed by specialist supervisory law. Disputes are often resolved by arbitration, although Swiss courts are available when agreed.

Why You May Need a Lawyer

Reinsurance arrangements often involve large limits, complex wordings, and cross-border elements. A lawyer can help you analyze and allocate risk, remain compliant, and avoid costly disputes. You may need legal advice when setting up a Swiss reinsurer or a Swiss branch, placing or renewing treaties and facultative certificates, drafting bespoke clauses such as claims control, follow the settlements, or hours clauses, and negotiating collateral such as letters of credit, funds withheld, or trust accounts.

Legal support is also important when handling significant or contested claims, commutations, set-offs, or portfolio transfers and novations. Regulated entities will need assistance with FINMA filings, governance, outsourcing, risk management policies, group transactions, and Swiss Solvency Test considerations. Businesses in Arlesheim with large industrial risks may seek advice on complex structured reinsurance, captives and fronting, multinational program alignment, sanctions and export control screening, data protection for cross-border transfers, and competition law when participating in facilities or market placements.

In a dispute, counsel can analyze jurisdiction and governing law, manage arbitration or court proceedings, and protect your position regarding limitation periods, document retention, and settlement strategy. Local counsel is also valuable for language and procedural issues before Basel-Landschaft courts and authorities.

Local Laws Overview

Supervision and licensing. The Swiss Insurance Supervision Act and related ordinances require authorization by FINMA for reinsurers domiciled in Switzerland and for Swiss branches of foreign reinsurers. Cross-border reinsurance provided into Switzerland without a Swiss presence is generally not subject to FINMA licensing, but Swiss cedents remain responsible for prudent counterparty selection and compliance. Supervised entities must meet governance, fit and proper, risk management, reporting, outsourcing, and group supervision requirements, and must maintain capital under the Swiss Solvency Test.

Contract law. Reinsurance contracts are typically not governed by the Swiss Insurance Contract Act. Instead, they are governed by the Swiss Code of Obligations and the parties agreement. This gives substantial freedom to tailor wordings, subject to good faith and general contract law principles. Parties are free to choose governing law and forum under the Swiss Private International Law Act. Arbitration seated in Zurich, Geneva, or Basel is common, and court jurisdiction clauses are also enforceable in commercial matters.

Solvency and credit for reinsurance. The Swiss Solvency Test recognizes reinsurance risk mitigation, subject to counterparty credit risk and concentration limits. Collateral is not mandated by law, but may be negotiated. Swiss reinsurers generally are not required to maintain tied assets in the same way as direct insurers, but remain subject to capital and risk management standards.

Tax and accounting. Insurance and reinsurance services are exempt from Swiss VAT. Federal stamp duty does not apply to reinsurance premiums. There is generally no Swiss withholding tax on reinsurance premiums. Swiss domiciled entities are subject to federal and cantonal corporate income tax, and transfer pricing rules apply to intra group reinsurance. Accounting, reserving, and disclosure follow FINMA and accounting standards applicable to the entity.

Data protection. The revised Swiss Federal Act on Data Protection applies to personal data processed in underwriting, claims, and audit trails. Cross-border transfers require an adequacy basis or safeguards. Proportionality, transparency, and security measures are expected, and contracts should address data sharing and audit rights.

Competition and market conduct. Swiss competition law prohibits anti-competitive agreements and abusive conduct. Market placements, facilities, and information exchange must be structured to avoid competition law risks. Distribution, broking, and fee arrangements should be transparent and compliant.

Sanctions and AML. Swiss sanctions law applies to reinsurance placements and claims payments that may involve restricted countries, persons, or sectors. Even when AML rules are less directly applicable to reinsurance than to direct life insurance, robust screening and contractual protections are recommended.

Dispute resolution. Disputes may be heard by arbitration under widely used rules or by Swiss courts where agreed. Basel-Landschaft courts will apply local procedural rules in German. Swiss law provides general limitation periods that can be adapted by contract in commercial settings, and reinsurance treaties often include specific notification and limitation provisions.

Insolvency and priority. Swiss law provides special protection for direct insurance policyholders of insolvent insurers. Cut-through provisions that attempt to redirect reinsurance recoveries to policyholders or third parties may face enforceability limits, especially in insolvency. Legal advice is essential when using loss payee and cut-through structures.

Frequently Asked Questions

Do foreign reinsurers need a Swiss license to write reinsurance for a cedent in Arlesheim?

Not if they write business on a cross-border basis without a Swiss branch or other Swiss presence. A license is required for Swiss domiciled reinsurers and for Swiss branches of foreign reinsurers. Cedents should assess counterparty strength and compliance, and confirm that any marketing or on the ground activity does not trigger licensing.

Does the Swiss Insurance Contract Act apply to reinsurance?

Generally no. Reinsurance contracts are usually outside the scope of the Insurance Contract Act and are governed by the Swiss Code of Obligations and the terms the parties agree. This allows significant freedom to craft bespoke treaty and facultative terms.

What governing law and forum are commonly used in Swiss reinsurance contracts?

Parties often choose Swiss law or another well known commercial law such as English law. Disputes are frequently referred to arbitration seated in Switzerland, though court jurisdiction clauses are also used. The Swiss Private International Law Act supports party autonomy on law and forum in commercial agreements.

Are reinsurance premiums subject to Swiss VAT or stamp duty?

Reinsurance services are exempt from Swiss VAT, and federal stamp duty on insurance premiums does not apply to reinsurance. There is generally no Swiss withholding tax on reinsurance premiums. Swiss domiciled entities remain subject to corporate income tax and transfer pricing rules.

Is collateral required to obtain credit for reinsurance under Swiss rules?

Collateral is not mandated by law. The Swiss Solvency Test grants credit for reinsurance subject to counterparty credit risk and concentration considerations. Many cedents negotiate collateral such as letters of credit, trust accounts, or funds withheld to align with internal risk appetite or rating agency expectations.

How do limitation periods work for reinsurance claims under Swiss law?

Swiss law contains general limitation rules, but reinsurance contracts often specify notice periods, reporting obligations, and contractual limitation periods that govern the relationship. Review your treaty for time bars and proof of loss requirements, and diarize them early to preserve rights.

Can policyholders claim directly against a reinsurer under a cut through clause?

Direct claims against reinsurers are limited under Swiss law due to privity of contract and insolvency priority rules. Cut through and loss payee clauses may face enforceability constraints, particularly if an insurer becomes insolvent. Specialist advice and careful drafting are essential.

What data protection rules apply when sharing claims files with a reinsurer?

The Swiss Federal Act on Data Protection applies to personal data in underwriting and claims. Sharing with reinsurers should be necessary and proportionate, reflected in contracts, and supported by cross-border safeguards if data leaves Switzerland. Security, retention, and audit rights should be addressed.

Do commutations or portfolio transfers require regulatory approval?

Commutations are typically contractual and may not require approval, but disclosure and accounting effects must be handled properly. Transfers of insurance or reinsurance portfolios involving Swiss supervised entities can trigger FINMA approval and policyholder or counterparty notifications. Early regulatory engagement is advisable.

How are disputes resolved locally if there is no arbitration clause?

If the contract grants court jurisdiction in Switzerland or if Swiss courts have jurisdiction by law, proceedings would be before the competent courts, with Basel-Landschaft courts handling cases tied to Arlesheim under local procedure. Proceedings are in German. Foreign awards and judgments can often be recognized and enforced in Switzerland under applicable conventions and Swiss law.

Additional Resources

Swiss Financial Market Supervisory Authority FINMA - supervisory rules, licensing guidance, circulars, and reporting frameworks for reinsurers.

Commercial Register Office of Basel-Landschaft - corporate registrations and extracts for entities domiciled in the canton.

Civil courts of Basel-Landschaft - information on civil procedure and court organization relevant to commercial disputes.

Swiss Insurance Association SIA - industry guidance and market position papers, including reinsurance topics.

Swiss Insurance Brokers Association SIBA - broker standards and market practice references for placements and disclosures.

Swiss Arbitration Center - institutional rules and resources for arbitration commonly used in reinsurance disputes.

Swiss Competition Commission COMCO - guidance on competition law compliance for market cooperation and information exchange.

State Secretariat for International Finance SIF - policy updates on financial market regulation and international initiatives.

Federal Tax Administration FTA - guidance on VAT exemptions and federal stamp duty rules relevant to reinsurance.

Basel Chamber of Commerce - regional business support and networking for companies operating in the Basel area.

Next Steps

Clarify your objectives and counterparties. Identify whether you are placing or receiving reinsurance, whether a branch or domiciled entity is involved, and whether any cross-border activity could trigger licensing or tax consequences.

Collect key documents. Gather draft wordings, endorsements, slips, NDA, prior year treaties and bordereaux, organizational charts, outsourcing agreements, and any collateral or trust documentation. Note governing law, forum, and service of process provisions.

Assess regulatory touchpoints. Confirm whether FINMA authorization, notifications, or approvals are relevant. Review governance, risk management, outsourcing, and group transaction policies for supervised entities. Map solvency and credit for reinsurance effects.

Map data and sanctions risks. Identify personal data fields, transfer destinations, and security controls. Screen transactions and counterparties for sanctions exposure and export controls, and align contract protections.

Evaluate tax and accounting. Confirm VAT treatment, stamp duty status, transfer pricing, and reserving or disclosure effects of your structure, commutation, or portfolio transfer.

Engage counsel early. Contact a lawyer experienced in Swiss reinsurance to review drafts, negotiate clauses, and plan regulatory contacts. For disputes, secure advice on limitation periods, jurisdiction, and evidence preservation.

Plan execution and governance. Align internal approval thresholds, signatory powers, and reporting calendars. For collateral, agree draw conditions and renewal timelines. For arbitration, select seat, rules, and arbitrator profile in advance.

This guide provides general information and is not legal advice. Reinsurance arrangements are fact specific. If you operate in or from Arlesheim and need assistance, consult qualified Swiss counsel who can tailor advice to your situation.