Best Reinsurance Lawyers in Kitzingen

About Reinsurance Law in Kitzingen, Germany

Reinsurance is insurance for insurers. It allows an insurance company to transfer a portion of its risk to another company so that large losses are shared and solvency is protected. In Germany, reinsurance is primarily governed by supervisory law and general contract law at the federal level. While Kitzingen is a regional business hub in Lower Franconia, the applicable rules are national. The Federal Financial Supervisory Authority BaFin supervises German reinsurers, and EU rules such as Solvency II shape governance, capital, and risk management. Day to day reinsurance contracts are largely a matter of private agreement between professional parties, subject to German civil and commercial law.

German reinsurers need BaFin authorization to operate. EEA reinsurers can passport their authorization into Germany. Third country reinsurers can often write reinsurance for German cedents on a cross border basis without a German license if they have no German branch, but cedents must consider credit risk and regulatory capital effects. Many operational and dispute issues are handled through contract wording, including choice of law, jurisdiction, and arbitration. In Kitzingen, reinsurance disputes would typically be handled in the agreed forum or, absent agreement, in the competent courts such as Landgericht Wuerzburg for larger commercial matters, with local first instance matters sometimes touching Amtsgericht Kitzingen.

Why You May Need a Lawyer

Negotiating and drafting treaty wordings. Quota share, surplus, excess of loss, stop loss, and facultative contracts require precise clauses on scope of cover, exclusions, claims handling, follow the settlements, follow the fortunes, and commutations. A lawyer helps align drafting with German law and market practice.

Regulatory questions. Setting up a reinsurance undertaking or branch in Germany requires BaFin authorization. Using cross border reinsurers, fronting arrangements, or intra group covers raises prudential, outsourcing, and governance questions under Solvency II and BaFin circulars.

Collateral and credit risk. Letters of credit, trust accounts, and funds withheld provisions affect capital relief and counterparty default charges. Counsel can align collateral terms with BaFin and accounting expectations.

Portfolio transactions. Novations, portfolio transfers, and run off deals generally require BaFin approval for primary insurance portfolios and careful structuring for reinsurance portfolios. Legal support is key for due diligence and regulatory filings.

Disputes and recoveries. Disagreements over aggregation, hours clauses, event definitions, loss settlements, late notice, and allocation are common. Counsel can manage pre action protocols, arbitration, and litigation strategy.

Sanctions, data protection, and outsourcing. EU sanctions compliance, GDPR requirements for claims and underwriting data, and outsourcing to service providers or clouds demand tailored contractual controls and risk assessments.

Tax and accounting. Reinsurance is generally exempt from German insurance tax and VAT, but corporate tax, transfer pricing, and accounting under HGB and Solvency II reporting require specialist input.

Local Laws Overview

Supervisory law. The Insurance Supervision Act VAG implements Solvency II in Germany and sets authorization requirements, governance, Own Risk and Solvency Assessment ORSA, and reporting for reinsurers. EIOPA guidelines and BaFin circulars, including Minimum Requirements for the Governance System MaGo and outsourcing guidance, provide further detail.

Contract law. Reinsurance contracts are mainly governed by the German Civil Code BGB and the German Commercial Code HGB. The Insurance Contract Act VVG primarily addresses primary insurance with consumers and is of limited direct application to reinsurance, so freedom of contract is broad among sophisticated parties.

Intermediaries. Insurance and reinsurance distribution rules implementing the EU Insurance Distribution Directive apply. Registration and oversight of intermediaries are handled under section 34d of the Trade Regulation Act GewO. In the Kitzingen region, the Chamber of Industry and Commerce IHK Wuerzburg Schweinfurt handles registrations and exams.

Dispute resolution. Parties often agree to arbitration, for example under the rules of the German Arbitration Institute DIS. Absent agreement, commercial disputes of significant value are heard by regional courts such as Landgericht Wuerzburg with appeals to Oberlandesgericht Bamberg. Local procedural rules are those of the German Code of Civil Procedure ZPO.

Tax. Reinsurance premiums are generally exempt from German insurance tax under the Insurance Tax Act VersStG and insurance and reinsurance services are exempt from VAT under section 4 no. 10 of the VAT Act UStG. Corporate income tax and trade tax can apply to German permanent establishments.

Data protection and cross border transfers. The GDPR applies to cedents and reinsurers processing personal data in underwriting and claims. Cross border transfers outside the EEA require appropriate safeguards such as EU standard contractual clauses and transfer risk assessments.

Sanctions and AML. EU and German sanctions regimes apply to payments and claims. Insurers and reinsurers must maintain effective screening and controls. Anti money laundering duties may apply depending on the structure and services.

Local touchpoints in Kitzingen. While supervision is federal, practical points include the IHK Wuerzburg Schweinfurt for intermediary matters, Amtsgericht Kitzingen for local judicial services, and Landgericht Wuerzburg for larger commercial disputes. Lawyers in the district are organized under the Rechtsanwaltskammer Bamberg.

Frequently Asked Questions

Do reinsurers need a license to write reinsurance for German cedents

Reinsurers based in Germany need BaFin authorization. EEA reinsurers can use passporting. Third country reinsurers may write German risks on a cross border basis without a German license if they do not operate a German branch, but cedents must assess counterparty credit, collateral, and capital effects under Solvency II. Establishing a German branch requires authorization.

Can a Kitzingen based insurer cede risks to a foreign reinsurer

Yes, subject to internal risk appetite, regulatory governance, and capital considerations. Many German cedents use EEA and third country reinsurers. Contracts should address governing law, jurisdiction or arbitration, collateral, claims cooperation, and sanctions compliance.

Is reinsurance subject to German insurance tax or VAT

Reinsurance premiums are generally exempt from German insurance tax. Insurance and reinsurance services are exempt from VAT. Corporate income tax and trade tax may apply to German permanent establishments of foreign reinsurers.

Which law should govern my reinsurance contract

Parties are free to choose governing law. German law is common for domestic arrangements, while English or New York law is also used in international programs. Your choice affects interpretation of clauses such as follow the settlements, aggregation, and limitation periods.

Should I choose court litigation or arbitration for reinsurance disputes

Arbitration is frequently used because panels can include industry experts, proceedings are confidential, and awards are widely enforceable. German courts are efficient and reliable. The choice depends on your risk profile, need for confidentiality, and cross border enforceability.

What clauses are critical in a treaty wording

Scope of cover, definition of loss and event, hours clauses, exclusions, attachment and limits, follow the fortunes and follow the settlements wording, claims control or cooperation, notice and reporting, inspection of records, set off and offset, funding and collateral, commutation, sanctions, governing law and jurisdiction or arbitration, and termination and run off.

Are cut through clauses enforceable in Germany

Cut through clauses that attempt to give the original policyholder a direct claim against a reinsurer face enforceability challenges under German law and insolvency rules. They require careful drafting and may still be limited in effect. Alternative structures may be preferable.

How long do I have to bring a reinsurance claim

Under German law, the default limitation period for contractual claims is three years from the end of the year in which the claim arose and you knew or should have known of the key facts and debtor. Reinsurance parties often agree on specific notice and limitation periods in the contract. Check your wording promptly.

What happens if my reinsurer becomes insolvent

Your rights depend on contract terms, collateral such as trust accounts or letters of credit, and applicable insolvency law. There is no general guarantee fund for reinsurance. Early monitoring of credit quality and collateral provisions is essential to protect recoverables.

Do reinsurance intermediaries in Kitzingen need to register

Yes, reinsurance and insurance intermediaries generally require registration under section 34d GewO and are supervised locally by the IHK Wuerzburg Schweinfurt. Requirements include reliability, professional qualification, and professional indemnity insurance.

Additional Resources

BaFin Federal Financial Supervisory Authority for authorization, supervision, and circulars affecting insurers and reinsurers.

EIOPA European Insurance and Occupational Pensions Authority for Solvency II and governance guidelines.

IHK Wuerzburg Schweinfurt for intermediary registration and examinations in the Kitzingen region.

German Arbitration Institute DIS for arbitration rules and institutional support.

GDV German Insurance Association for model clauses and market guidance.

Rechtsanwaltskammer Bamberg for regional bar information and lawyer directories.

Statutes to review include VAG Insurance Supervision Act, VVG Insurance Contract Act, BGB Civil Code, HGB Commercial Code, VersStG Insurance Tax Act, and UStG VAT Act.

Local courts relevant for disputes include Amtsgericht Kitzingen and Landgericht Wuerzburg.

Next Steps

Clarify your objective. Define whether you need help structuring a treaty, responding to a claim dispute, arranging collateral, transferring a portfolio, or seeking authorization.

Gather key documents. Collect policies and binders, treaty wordings, slips and cover notes, endorsements, bordereaux, claim files and correspondence, regulatory communications, and internal approvals and minutes.

Diarize deadlines. Identify notice requirements, proof of loss deadlines, commutation windows, and limitation periods under your contracts and under German law.

Check counterparties. Verify the authorization status and financial strength of reinsurers and intermediaries. Confirm any registration obligations with IHK Wuerzburg Schweinfurt if you distribute or intermediate.

Choose dispute strategy. Decide early between negotiation, mediation, arbitration, or court litigation. Preserve without prejudice communications and evidence.

Engage qualified counsel. Seek a lawyer experienced in German reinsurance law and Solvency II. For matters likely to be heard locally, consider counsel familiar with the Wuerzburg and Bamberg court districts and arbitration practice.

Manage compliance. Assess GDPR, sanctions, and outsourcing implications. Update internal governance and documentation to align with BaFin and EIOPA expectations.

Note. This guide is for information only and is not legal advice. For specific questions about reinsurance in Kitzingen or elsewhere in Germany, consult a qualified lawyer.