Insurance and reinsurance law

Litigation lawyers in insurance and reinsurance (which is insurance for insurers, often put in place to protect against especially large risks) generally act for insurers or reinsurers who have underwritten risks and need advice on claims being made by their clients. They can also act for people or organisations who have had claims rejected by their insurers.

Graduate careers in insurance and reinsurance law

The disputes dealt with by City law firms tend to be complex, high-value disputes between large corporations and their insurers or between insurers and their reinsurers. Lawyers are likely to be instructed by either a claims handler or the in-house lawyer at an insurance or reinsurance company. Work can range from environmental disasters such as Hurricane Katrina to man-made disasters such as the 9/11 attacks, and from fraudulent companies such as Enron to diseases caused by asbestos. Smaller law firms tend to deal with less complex, low-value disputes such as claims brought by individual policy-holders against insurers.

Initially, lawyers will need to review documents so as to be able to advise the client whether the claim should be paid or if it can be contested. Depending on the volume of papers, this can take up to two months. If the matter then becomes litigious and legal proceedings begin (either in the courts or by way of arbitration) then the dispute could go on for up to three years.

Work tends to be office-based, although there will be regular out-of-office meetings with the client and the lawyers representing the other side. If the matter becomes litigious, there will also be meetings with barristers, who will represent the client at any hearings. There may be opportunities for travel if the client is based abroad. Hours are likely to be fairly regular with little late-night or weekend working unless a hearing or deadline is imminent, or if there is an international element to the case, which means that the time difference will need to be factored in.

As in most commercial areas of law, there is a fair amount of marketing called for: this involves explaining services and expertise to new and existing clients. This could be over lunch or dinner or through seminars, articles and briefing papers on ‘hot’ market issues. The insurance industry in London is very sociable and there are numerous industry events throughout the year.

This area of work is very buoyant, largely because of London’s prominence in the global insurance marketplace, although economic conditions can affect the buoyancy of the market. When conditions are good and insurers are making a lot of money from high premiums, then they are less likely to bring or defend claims – they prefer to preserve their business relationships. However, when the economy turns and premiums fall, they are less willing to pay claims and are more likely to instigate legal proceedings.

Is insurance and reinsurance law recession-proof?

The current financial crisis has seen a significant number of lawsuits brought, particularly in the US, against directors and officers of companies, accountants, lawyers and financial institutions. The UK is at an earlier stage and English procedural rules do not permit class actions, which make up much of the US litigation, for punitive damages. However, group and representative actions may be brought.

What skills does an insurance and reinsurance law solicitor need to do the job?

• Analytical ability.
• Attention to detail.
• Commercial awareness.
• Teamworking skills.

What is it like doing a trainee solicitor's job in insurance and reinsurance law?

Trainees will work under the supervision of either a partner or a senior associate. They will be involved in reviewing and organising the documents relating to a case, taking notes in meetings, corresponding with the client and the other side and, if relevant, witnesses and experts. They may also do legal research and are likely to be encouraged to become involved in marketing initiatives, including writing articles and attending functions.

You should consider this area of practice if you relish a challenge. Disputes – and the terminology involved – can be very complex and many issues lawyers face on a daily basis are challenging and intellectually stimulating. However, there is great variety in the work as almost anything can be insured.

Types of law practised

• Contract.
• International.
• Tort.

About the author

ANTONY WOODHOUSE is a partner in the insurance and reinsurance department at EDWARDS ANGELL PALMER & DODGE LLP.