Best Reinsurance Lawyers in Borgholm

About Reinsurance Law in Borgholm, Sweden

Reinsurance is a business to business arrangement where an insurer transfers part of its risk to another company, the reinsurer. In Borgholm, as in the rest of Sweden, reinsurance activity is regulated at the national and European Union level. There are no special rules that apply only in Borgholm, so companies operating in or with counterparties from Borgholm follow Swedish law and EU standards. The Swedish Financial Supervisory Authority, Finansinspektionen, oversees insurers, reinsurers, and reinsurance intermediaries. EU Solvency II rules set capital, governance, and reporting frameworks for regulated firms. Reinsurance contracts themselves are negotiated agreements that rely on Swedish contract law or another chosen governing law, often English law, subject to Swedish and EU mandatory rules.

For local businesses and public bodies in Borgholm, reinsurance helps manage exposures such as property, marine, agriculture, tourism, and infrastructure risks. Transactions can be proportional or non proportional, facultative or treaty, and may involve collateral and security when counterparties are outside the European Economic Area.

Why You May Need a Lawyer

Reinsurance transactions are complex and high value. A lawyer can help you structure, negotiate, and document arrangements that protect your interests and meet regulatory expectations. Common situations that call for legal support include drafting or reviewing treaty and facultative reinsurance contracts, setting up collateral and trust or letter of credit arrangements, assessing counterparty authorization and credit risk, ensuring Solvency II credit for risk mitigation, handling cross border placements and passports, negotiating claims control and claims cooperation clauses, managing complex or disputed claims and commutations, arranging portfolio transfers, novations, or run off solutions, advising on reinsurance distribution and broker licensing, addressing data protection and international data transfers, and coordinating with regulators on approvals, notifications, and reporting.

If a dispute arises, a lawyer can guide you through arbitration or court proceedings, evidence preservation, expert engagement, and settlement strategy. Counsel can also help align the reinsurance with the underlying direct policy so that coverage, exclusions, aggregation, follow the fortunes, and follow the settlements provisions work as intended under Swedish law.

Local Laws Overview

Regulatory framework. Reinsurance in Sweden is supervised by Finansinspektionen. EU Solvency II sets capital, governance, risk management, and reporting duties for authorized insurers and reinsurers. Firms use the standard formula or an internal model and must demonstrate effective risk transfer for reinsurance credit to apply. Significant arrangements that affect risk profile require careful documentation and may be reviewed by the supervisor.

Authorization and market access. A reinsurer based in Sweden needs authorization. An EEA authorized reinsurer can passport into Sweden on a freedom of services or branch basis. A non EEA reinsurer may write reinsurance for a Swedish cedant without a Swedish license if it does not carry on regulated business in Sweden, but the cedant must assess counterparty risk, and collateral or other security may be needed to achieve full Solvency II credit. Reinsurance intermediaries are regulated under the Swedish Insurance Distribution Act and must be registered, fit and proper, and follow conduct and product governance rules.

Contract law. Reinsurance contracts are commercial agreements. Swedish law recognizes freedom of contract between professional parties. The Swedish Insurance Contracts Act mainly governs direct insurance and consumer protection and typically does not apply to reinsurance. The general Swedish Contracts Act applies, along with standard principles on interpretation, good faith, and unfair terms. Parties often choose governing law and arbitration. Stockholm is a common seat for arbitration, and Swedish courts generally respect choice of law and arbitration clauses.

Risk mitigation recognition. To receive capital relief, the cedant must show that the reinsurance provides effective risk transfer, that the counterparty is creditworthy, and that any collateral is enforceable and of good quality. Letters of credit, cash, and certain securities are commonly used, often with tri party account control or trust arrangements. Documentation should address insolvency, set off, and events of default.

Data protection and confidentiality. Processing and sharing policyholder information with reinsurers or intermediaries must comply with EU GDPR and Swedish data protection law. Use appropriate legal bases, data minimization, confidentiality safeguards, and transfer tools for data moved outside the EEA. Trade secrets and confidentiality commitments should be embedded in reinsurance and intermediary agreements.

Tax. Reinsurance services are generally exempt from Swedish VAT. Sweden does not levy a general insurance premium tax. Corporate income tax applies to profits of Swedish companies. Cross border arrangements may have transfer pricing and permanent establishment considerations.

Disputes and insolvency. Arbitration clauses are common in reinsurance. Cut through clauses that seek to pay policyholders directly are limited in effect and may not bypass Swedish insolvency distribution rules without a robust legal structure. Set off, netting, and collateral enforcement terms should be drafted carefully and tested against Swedish insolvency law.

Local practice notes. There is no Borgholm specific regulator. Local counterparties often work with brokers and legal counsel based in Stockholm or other Swedish hubs. Court matters for Borgholm typically fall under the Kalmar District Court if litigation is chosen rather than arbitration.

Frequently Asked Questions

Do I need a Swedish license to provide reinsurance to a Swedish insurer?

A reinsurer that is authorized in another EEA state can passport into Sweden. A non EEA reinsurer can usually write reinsurance for a Swedish cedant without a Swedish license if it does not carry on business in Sweden. However, the cedant must assess the counterparty and structure the deal so that Solvency II recognizes the risk transfer. Intermediaries arranging reinsurance must be licensed or registered under Swedish distribution rules.

Can a Swedish insurer cede to a non EEA reinsurer and still receive capital credit?

Yes, but the cedant must show effective risk transfer and manage counterparty default risk. Collateral or other security is often used so the cedant can recognize reinsurance recoverables under Solvency II. The terms must be legally enforceable under Swedish law, and documentation should cover valuation, control, and substitution of collateral.

Are reinsurance contracts subject to the Swedish Insurance Contracts Act?

Generally no. That statute mainly protects policyholders in direct insurance. Reinsurance is a commercial contract between professional parties, so Swedish contract law applies, along with the agreed governing law if different. Consumer insurance protections do not apply to reinsurance.

What governing law and dispute resolution are commonly used?

Parties often choose Swedish law or English law. Disputes are commonly resolved by arbitration, frequently with Stockholm as the seat and institutional rules such as those of the SCC Arbitration Institute. Swedish courts usually uphold clear choice of law and arbitration clauses.

What collateral is acceptable to support reinsurance recoverables?

Cash, high quality securities, and letters of credit are common. The arrangement should give the cedant control or reliable access on default, define eligible assets and haircuts, and be structured to work in insolvency. Tri party account control agreements and trusts are widely used. The specific requirements depend on the cedant’s Solvency II approach and risk appetite.

How are reinsurance brokers regulated in Sweden?

Reinsurance intermediation is regulated under the Insurance Distribution Act. Firms and individuals must be registered, meet fitness and propriety standards, carry professional indemnity insurance, follow conduct and disclosure obligations, manage conflicts of interest, and handle client money under prescribed rules. Cross border broking from the EEA uses passporting.

How are claims control and follow the settlements clauses treated?

Swedish law respects freedom of contract, so clear claims control, cooperation, follow the fortunes, and follow the settlements clauses are generally enforceable. They should be drafted to align with the cedant’s duty to handle direct claims properly and in good faith. Ambiguities are a frequent source of disputes, so precise wording is important.

Can we use cut through clauses to pay policyholders directly?

Cut through clauses have limited effect in Sweden. They may facilitate direct payment in specific scenarios if clearly drafted and if the cedant cooperates, but they do not usually allow a policyholder to bypass insolvency priority and distribution rules. If direct protection is needed, consider fronting structures or other legally robust mechanisms with bespoke legal advice.

Are reinsurance premiums subject to Swedish VAT or premium taxes?

Reinsurance services are generally exempt from Swedish VAT. Sweden does not levy a general insurance premium tax. Some sector specific charges can apply to certain direct insurance lines, but these typically do not apply to reinsurance premiums. Always confirm current tax treatment for your transaction.

What are the rules on data sharing with reinsurers?

Sharing policy and claims data with reinsurers must comply with GDPR and Swedish data protection law. Use an appropriate legal basis, share only what is necessary, put confidentiality and security measures in place, and use approved transfer tools when sending data outside the EEA. Data processing agreements with clear purpose and retention periods are standard.

Additional Resources

Finansinspektionen, the Swedish Financial Supervisory Authority, for authorization, supervision, and regulatory guidance.

European Insurance and Occupational Pensions Authority, for Solvency II and insurance distribution materials and Q&As.

Svensk Försäkring, Insurance Sweden, the industry association for insurers and reinsurers.

Swedish Insurance Brokers Association, for intermediary standards and practice updates.

Swedish Tax Agency, Skatteverket, for tax rulings and guidance related to insurance and reinsurance.

Stockholm Chamber of Commerce Arbitration Institute, for arbitration rules and best practices in commercial disputes.

Bolagsverket, the Swedish Companies Registration Office, for company filings and corporate information.

Next Steps

Map your objectives. Clarify what you need from reinsurance, such as capital relief, earnings protection, catastrophe cover, or access to underwriting expertise. Outline the scope, limits, and duration you are seeking.

Assemble key information. Prepare underwriting data, loss histories, exposure information, model outputs, draft wordings, and your current reinsurance program. Identify any regulatory or rating agency constraints.

Engage specialists. Speak with a Swedish reinsurance lawyer and, if relevant, a broker and tax adviser. Ask about experience with Solvency II risk mitigation, collateral structures, and dispute resolution. Request a conflicts check and a scoped proposal with timelines and fees.

Check counterparties. Verify authorizations or passports, financial strength, sanctions status, and reputational considerations. For non EEA reinsurers, plan collateral or security early and align it with your treasury and custodians.

Design documentation. Align the reinsurance wording to the underlying direct policies, especially on definitions, exclusions, aggregation, notice, claims control, and settlement standards. Build in clear events of default, set off, netting, and collateral enforcement mechanics.

Plan compliance and data protection. Confirm that distribution, governance, outsourcing, and reporting obligations are covered. Put GDPR compliant data processing and transfer arrangements in place.

Anticipate approvals and timing. Passport notifications can take a few weeks. Complex collateral and account control documents may take several weeks to negotiate. Portfolio transfers or run off solutions can take several months and may require regulatory approval. Build these timelines into your renewal calendar.

Document and monitor. Once placed, maintain records, track recoverables, test collateral sufficiency, and capture lessons learned for future renewals. If issues arise, escalate early to legal counsel to preserve options and evidence.

This guide is general information. For advice about your specific situation in Borgholm or elsewhere in Sweden, consult a qualified Swedish reinsurance lawyer.