UK Law and Practice Contributed by: Clare Swirski, E. Drew Dutton, Hugo Laing and Rosamund Wood, Debevoise & Plimpton LLP
9.6 Enforcement of Awards Arbitration clauses in commercial insurance and rein- surance contracts can be enforced in the same way as arbitration clauses in other kinds of contracts. Indeed, arbitration is a popular method of resolving insurance disputes. ARIAS (UK) has prepared a recommended arbitration clause, which considers the ARIAS Arbi- tration Rules and the provisions of the 1996 Act (as amended by the 2025 Act). 9.7 Alternative Dispute Resolution Arbitration is commonly used in insurance and rein- surance disputes, and a clause requiring this form of dispute resolution to be used may be contained in the policy. The International Chamber of Commerce (ICC) and the London Court of International Arbitration (LCIA) are frequently used. A contract might also require resolution of a dispute through another form of alternative dispute resolution, such as mediation. The court actively promotes the use of alternative dispute resolution and will encourage or, in certain circumstances, order, mediation before litigation for insurance and reinsurance contracts. Failure to attempt mediation may result in cost penalties. 9.8 Penalties for Late Payment of Claims The Enterprise Act 2016 introduced an implied term to (re)insurance contracts that insurers must pay sums owed to policyholders within a reasonable time. The type of insurance, the size and complexity of the claim, compliance with any relevant statutory or regulatory rules or guidance and factors outside the (re)insurer’s control will be considered when assessing what con- stitutes a reasonable time. A breach of this implied term could give rise to a claim for damages. The limitation period for the insured to bring the claim for damages is one year from the date of the insurer’s last payment in respect of the relevant loss (the Limitation Act 1980). Parties to a non-consumer contract can contract out of the reasonable time obligation, provided they com- ply with the IA 2015 transparency requirements.
the judgment was given since a foreign judgment is only enforceable under the common law regime if the original court had jurisdiction according to the rules that English law applies in such cases. Hague 2005 Further to the foregoing, if there is an exclusive juris- diction clause, then Hague 2005 will apply. If the exclusive jurisdiction clause was entered into after 31 December 2020, then Hague 2005 provides for the enforcement of judgments in a similar way to the Recast Brussels Regulation and will apply to the enforcement of judgments from the signatory coun- tries, including the EU member states, Mexico, Singa- pore, Montenegro, Ukraine, Moldova, Albania, Swit- zerland, North Macedonia and Bahrain. Hague 2019 The Hague Convention of 2 July 2019 on the Recogni- tion and Enforcement of Foreign Judgments in Civil or Commercial Matters (“Hague 2019”) offers an addi- tional regime for recognising and enforcing judgments in civil and commercial matters. Hague 2019 entered into force in the UK on 1 July 2025, and it applies to the enforcement of judgments between contract- ing states, which currently include the EU member states (except Denmark), Ukraine, Uruguay and the UK. In the UK, Hague 2019 applies to proceedings commenced on or after 1 July 2025. Hague 2019 is considerably wider in scope than Hague 2005, since it also applies in circumstances where a contract contains a non-exclusive jurisdic- tion clause or an asymmetric jurisdiction clause, as well as in numerous other circumstances specified in Article 5. 9.5 Enforcement of Arbitration Clauses Arbitration clauses in commercial insurance and rein- surance contracts can be enforced in the same way as arbitration clauses in other kinds of contracts. Indeed, arbitration is a popular method of resolving insurance disputes. The Insurance and Reinsurance Arbitration Society (ARIAS (UK)) has prepared a recommended arbitration clause, which considers the ARIAS Arbi- tration Rules and the provisions of the Arbitration Act 1996 (the “1996 Act”) (as amended by the Arbitration Act 2025 (the “2025 Act”).
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