UK considers EC choice of law proposal

The UK government is re-considering its position regarding Rome I, the EU regulation (“The Regulation on the Law Applicable to Contractual Obligations”) following the 1980 Rome Convention. The UK elected not to opt in in May 2006 but a new text proposed by the Finnish and German EU Presidencies at the end of last year would bring insurance within Rome I for the first time. The consultation looks at choice of law issues in insurance and reinsurance contracts which it says are complex; for insurance policies covering risks within the EU, choice of law is determined by the rules in the Consolidated Life Insurance Directive (Directive 2002/83/EC) and the 2nd Non-Life Insurance Directive (Directive 88/357/EEC). Insurance policies covering risks located outside of the EU are covered by the 1980 Convention. Reinsurance policies, for risks located both inside and outside of the EU, are covered by the 1980 Convention.