Insurance Law is a type of risk management in which the risk of loss is transferred from one party to another through the payment of a premium. Reinsurance transfers the risk back typically associated with buying insurance with an insurance company with a lot of money at stake.
Companies use insurance for large-scale commercial activities, such as investment management and mergers and acquisitions.
What is insurance law?
Insurance law can be divided into several sub-specialties. Insurance lawyers mainly deal with insurance against property destruction and insurance against professional errors. Insurance cases are diverse and range from small local cases to large international disputes.
What is the Reinsurance Act?
Reinsurance law in the UK is regulated in the same way as basic insurance. British law on insurance contracts generally applies to reinsurance contracts. Insurance Act 2015 applies to non-consumer insurance and reinsurance contracts.
Types of Laws on Insurance and Reinsurance
Insurance covers a variety of risks, including issues in different legal sectors such as employment, transportation, property, construction and professional services. An insurance policy is a contract that contains the body of insurance statutes, regulatory rules and case law.
What does an insurance lawyer do?
In general, this will depend on the type of company you are in and the type of customers you have. For example, you may act on behalf of an individual filing a claim against an insurance company that has denied the claim.
In the larger business aspects of insurance law, large companies typically act on behalf of insurance or reinsurance companies in a wide range of activities, from advising companies on claims against them, to transferring business between insurance companies. Merger or Acquisition.
Insurance attorneys review claims filed on behalf of clients and advise clients on the strength of the case. If the circumstances are debatable, you may seek a claim in arbitration or in court.
What skills do you need?
This is an area of law that contract law deals with a lot, so you need a good foundation in this area of law, an eye for detail and excellent drafting skills. Commercial awareness is important so that lawyers can understand their clients’ circumstances and make sound business judgments. You must understand contract law, including drafting policies and evaluating potential breaches of warranty.
As in many fields of law, communication and teamwork skills are prerequisites.
How to become an insurance lawyer
To become an insurance attorney, you must go through a transition course after completing a law or non-law degree. You then take a one-year vocational course known as a Law Practice Course (LPC), followed by a two-year training contract. Insurance Law must be taken as an elective during the LPC period. Most training contracts are signed with lawyers, in-house legal departments or local authorities.
From September 2021, law practice courses will be replaced by Solicitor Qualifying Examination (SQE) for qualification as a lawyer in England and Wales.
Alternatively, you can study LLM Insurance Law or LLM Insurance Law online. It is a graduate degree designed for non-law graduates who wish to pursue the Master of Laws degree and the Master of Insurance Law qualification.
Insurance Law and Practice
The insurance industry is well established and has its own rules and terminology. The Financial Conduct Authority regulates the industry. Some law firms specializing in insurance law regularly act on behalf of insurance companies and policyholders. However, there is a trend towards companies that specialize in the work of policyholders or insurance companies.
Both insurers and consumers need lawyers who are experts in the field of insurance. Insurance lawyers are litigants, but they can also do compliance or lobbying. Lawyers specializing in insurance law have a solid track record of using their communication and litigation skills to increase the interests of their clients. The insurance market is mobile and versatile.