Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Reinsurance is the insurance that insurers buy to protect themselves from large losses and to stabilise results over time. In Israel reinsurance transactions are largely governed by contract law, regulatory requirements that apply to insurers and intermediaries, and the practices of the international reinsurance market. Ramla is a city in Israel where local insurers, brokers and policyholders can access legal and regulatory services locally, but most core legal rules and supervision are national. Reinsurance in Israel commonly involves treaty reinsurance and facultative placements, proportional and non-proportional structures, and often accepts international practice standards including the use of English language contracts and international arbitration clauses.
Reinsurance matters often involve complex technical, contractual and regulatory issues. You may need a lawyer if you are facing any of the following situations:
- Negotiating or drafting reinsurance treaties or facultative slips - to ensure clear allocation of risks, premium mechanics, notification and settlement procedures.
- Disputes about claims between cedants and reinsurers - including coverage disputes, allocation of loss, timing of notice and proof of loss.
- Insolvency or financial difficulty of a party - where priority of claims, solvent run-off, and statutory insolvency procedures may affect recoveries.
- Regulatory or licensing questions - for insurers, reinsurers, and brokers who must comply with the Capital Markets, Insurance and Savings Authority rules and reporting obligations.
- Cross-border issues - where choice of law, jurisdiction, enforcement of foreign awards or judgments, and tax treatment must be coordinated.
- Arbitration or litigation - representing parties in arbitration panels or before Israeli courts, including interim relief and enforcement of arbitral awards.
The following legal and regulatory points are particularly relevant for reinsurance in Ramla and across Israel:
- National supervision - The Capital Markets, Insurance and Savings Authority regulates the insurance sector in Israel and sets prudential and conduct rules that affect cedants and licensed insurers. Reinsurance arrangements can be scrutinised where they affect solvency and market conduct.
- Contract law and freedom of contract - Reinsurance relationships are primarily contractual. Parties are free to allocate risks, set notice and proof requirements, and choose dispute resolution mechanisms, subject to mandatory public law restrictions.
- Licensing and intermediaries - Insurance and reinsurance brokers and intermediaries that operate in Israel generally need to be authorised or registered under the relevant rules. Foreign reinsurers commonly operate through contractual placements with Israeli insurers or via local branches where required.
- Dispute resolution - Arbitration is widely used for reinsurance disputes. Israeli courts will enforce arbitration agreements and awards, but parties can also litigate in Israel. Choice of governing law clauses are respected where not contrary to public policy.
- Insolvency and run-off - Commercial insolvency and insurance insolvency mechanisms can determine how claims against an insolvent insurer or reinsurer are handled. Treatment of reinsurance recoverables in insolvency is a specialised area requiring legal advice.
- Tax and accounting - Reinsurance has tax, VAT and accounting consequences under Israeli law and international accounting standards. Premium allocation, commission treatment and cross-border payments may trigger tax reporting and withholding obligations.
- Consumer protection and regulatory public policy - Although reinsurance is a commercial market, aspects that impact policyholders or the stability of the insurance market can draw regulatory attention and public law restrictions.
Reinsurance is an arrangement where an insurance company transfers part of its risk to another insurer - the reinsurer. The ceding insurer pays a premium and, in return, the reinsurer agrees to indemnify the ceding insurer for covered losses. Reinsurance can be treaty-based for a portfolio or facultative for individual risks.
The main types are proportional reinsurance - where premiums and losses are shared according to an agreed percentage - and non-proportional reinsurance - where the reinsurer pays losses above an agreed retention or attachment point. Within non-proportional there are excess of loss structures for single events or aggregate losses.
Reinsurance contracts themselves are governed by general contract law, but the parties to those contracts - especially licensed insurers and intermediaries - must comply with insurance regulation. The regulator monitors reinsurances that affect the solvency or market conduct of Israeli insurers.
Yes, intermediaries that operate in the Israeli insurance market must follow licensing and conduct requirements. Whether a specific foreign broker must be licensed depends on the nature of its activities in Israel. Legal advice helps determine licensing exposure.
Reinsurance disputes are commonly resolved through arbitration, especially where contracts specify an arbitral tribunal and seat of arbitration. Israeli courts can also hear disputes and provide interim relief. Enforcement of foreign arbitral awards in Israel follows applicable statutes and international conventions.
Insolvency of a reinsurer can complicate recoveries. The cedant may become an unsecured creditor or have pari passu status depending on the jurisdiction and contractual protections. Insolvency can involve reinsurance run-off arrangements, set-off issues and priority disputes that require specialist legal handling.
Statutes of limitation depend on the type of claim and the contract terms. Israeli law sets limitation periods for contractual and tort claims, but these can be extended or shortened by agreement within limits. Prompt legal advice is important to preserve rights and meet notice deadlines in contracts.
Yes, parties may choose a foreign governing law and arbitration seat, and such clauses are generally respected. However, enforcement and public policy considerations in Israel may affect outcomes, and some local regulatory requirements may override purely contractual choices.
Bring the reinsurance treaty or facultative slip, underlying insurance policy terms, correspondence between cedant and reinsurer, claim documentation and proofs of loss, accounting records, notices and any regulatory filings. Clear facts and timelines help a lawyer assess obligations and remedies promptly.
Fees vary by complexity and firm. Common arrangements include hourly billing, fixed fees for transactional work, and agreed retainers. For dispute work, lawyers may use mixed arrangements including hourly rates with capped caps or success-related components. Always ask for a fee estimate and scope of work up front.
For further help and authoritative guidance, consider contacting or consulting materials from the following types of bodies and organisations:
- The Capital Markets, Insurance and Savings Authority - the national regulator for insurers and intermediaries in Israel.
- The Israel Bar Association - for listings of qualified lawyers and guidance on professional standards.
- Local courts in the region - including the Ramla Magistrate Court and the Central District court system for matters requiring litigation or interim relief.
- Industry associations - such as national insurers associations and professional broker associations which provide market guidance and practice notes.
- Tax authorities and accounting firms - for tax and financial reporting guidance related to reinsurance transactions.
If you need legal assistance with a reinsurance matter in Ramla or elsewhere in Israel, follow these practical steps:
- Assemble your documentation - collect contracts, notices, claims files, correspondence and financial records.
- Identify the legal issue - determine whether the matter is contractual negotiation, a claim dispute, insolvency, regulatory compliance or an enforcement issue.
- Find an experienced lawyer - seek counsel with demonstrable experience in reinsurance, insurance regulation and cross-border disputes. Check professional credentials and ask for references.
- Request an initial consultation - many lawyers offer an initial meeting to assess strength of the case, applicable deadlines and likely costs.
- Agree scope and fees in writing - set out the work to be performed, timelines and fee arrangements before starting substantive work.
- Consider parallel advice - if your matter has tax, accounting or regulatory dimensions, obtain specialist advice in those areas too to avoid unintended consequences.
Reinsurance matters are often time sensitive and legally complex. Early specialist legal advice will help protect your rights, preserve recoveries and guide you through regulatory and procedural hurdles.
