Commercial Courts: New Opportunities and Challenges for Insurers

What does this mean for liability insurers?

• Faster settlement of complex claims:
  Commercial Courts offer the possibility to negotiate high-volume disputes (from €500,000 in dispute value) directly before experienced commercial chambers. The usual appeal instance is omitted, so after the Higher Regional Court, the Federal Court of Justice is called directly. This speeds up proceedings but also reduces the possibilities to comprehensively correct the facts at a later stage.

• Internationality and confidentiality:
  Proceedings can be conducted entirely in English – an advantage for international insurance programmes and cross-border disputes. In addition, confidentiality rules have been expanded so that sensitive information is better protected than in regular civil proceedings.

• New strategic considerations:
  The use of Commercial Courts is voluntary and requires the consent of both parties. Claims handler will have to carefully consider in future when this forum makes sense. The extended confidentiality options are particularly attractive for sensitive or reputation-relevant disputes.

• Locations relevant for insurers:
  Commercial Courts specialising in construction and architects’ law have already been established in Berlin, Düsseldorf and Hamburg. These courts offer insurers new opportunities to resolve complex construction law disputes efficiently and expertly.

Conclusion:
With the introduction of Commercial Courts, new opportunities but also challenges arise for liability insurers. It is advisable to review jurisdiction agreements, claims playbooks and internal decision-making processes and to develop clear guidelines for the use of this forum.

The Complex Claims Team at Pro Global Germany supports insurers, reinsurers and MGAs in the strategic assessment and use of Commercial Courts. Contact us to optimally prepare your company for this change.

Would you like to know how your company can benefit from the new Commercial Courts? Contact the Complex Claims Team at Pro Global Germany about how we can support you in the strategic assessment.