Brussels Recast Regulation and insurance

Category: Jurisdiction and applicable law · Reviewed by the Apex broking team · Last reviewed 2026-08-22 · ~4 min read

What Brussels Recast did

Regulation (EU) No 1215/2012 governed jurisdiction and the recognition and enforcement of judgments in civil and commercial matters between EU Member States, replacing the earlier Brussels I Regulation from 10 January 2015. Its central rule was that a defendant should be sued in the courts of the Member State where it was domiciled, subject to special and exclusive jurisdiction rules, and its central benefit was near-automatic enforcement: a judgment given in one Member State was enforceable in another without an intermediate declaration of enforceability.

It also strengthened the effect of exclusive jurisdiction agreements, reversing the earlier position under which a court first seised — even one chosen in breach of a jurisdiction clause — decided the question of jurisdiction first.

The insurance provisions specifically

Brussels Recast contained a dedicated section on jurisdiction in matters relating to insurance, at Articles 10 to 16. Its purpose was protective. A policyholder, insured or beneficiary could sue an insurer either in the courts of the insurer’s domicile or in the courts of their own domicile, and in liability and property cases where the harmful event occurred. Conversely the insurer was, as a general rule, restricted to suing in the courts of the defendant policyholder’s domicile. Jurisdiction agreements departing from the section were only permitted in defined circumstances, including certain large risks.

The practical consequence, while it applied, was that an EU-domiciled commercial policyholder had a home-court option against its insurer that could not easily be contracted away. That option no longer exists in relation to the UK courts.

Why it stopped applying to the UK

The United Kingdom left the European Union on 31 January 2020, and the transition period ended on 31 December 2020. Brussels Recast ceased to apply to the UK from 1 January 2021. In domestic law, retained versions of the EU civil jurisdiction instruments — including Regulation 1215/2012 — were revoked by the Civil Jurisdiction and Judgments (Amendment) (EU Exit) Regulations 2019, on the straightforward basis that a reciprocal regime cannot operate unilaterally.

There is one significant transitional carve-out. Under Article 67 of the Withdrawal Agreement, Brussels Recast continues to govern jurisdiction in proceedings instituted before the end of the transition period, and the recognition and enforcement of judgments given in such proceedings. Legacy matters begun before 1 January 2021 are therefore still on the old rules; nothing begun since is.

What governs jurisdiction in the UK now

Three regimes need to be considered in order. First, the 2005 Hague Convention on Choice of Court Agreements, to which the UK has been a party in its own right since 1 January 2021. Where a contract contains an exclusive choice of court agreement in favour of the courts of a contracting state, Hague 2005 requires the chosen court to hear the case and other contracting states to decline, and provides for recognition and enforcement of the resulting judgment. Its limits matter: it applies only to exclusive agreements, so asymmetric or one-way clauses common in finance documents may fall outside it, and it excludes certain subject matter.

Second, the 2019 Hague Judgments Convention, which entered into force for the United Kingdom on 1 July 2025. It provides a route to recognition and enforcement of judgments between contracting states in a wider range of cases than Hague 2005, without governing jurisdiction at the outset. Third, where neither Convention applies, the common law: jurisdiction depends on service, and permission to serve out of the jurisdiction is sought under the gateways in Practice Direction 6B, with the court applying the forum conveniens test. Enforcement then depends on the local law of the enforcing state or on any applicable bilateral treaty.

The Lugano Convention 2007 is not available. The UK applied to accede in April 2020, but accession requires the consent of all contracting parties, and the European Union has not given it. Any statement that the UK is a Lugano party, or that Lugano fills the Brussels gap, is wrong.

What this means for insurance contracts

The drafting consequences are direct. Because the protective insurance jurisdiction rules are gone and Hague 2005 rewards exclusivity, the value of a clearly drafted, exclusive jurisdiction clause in an insurance or reinsurance contract has increased considerably. A clause that names the English courts exclusively, in a contract within Hague 2005’s scope, is materially more robust than one that is silent, non-exclusive or asymmetric.

For policyholders with EU operations, the home-court option against an insurer has to be created by contract rather than assumed from the Regulation, and it should be checked against the law of the country where enforcement would actually be sought. Arbitration is unaffected by any of this: arbitration falls outside both the Brussels regime and the Hague Conventions, and awards remain enforceable under the New York Convention, which is one reason arbitration clauses have become more attractive in cross-border insurance and reinsurance since 2021.

Finally, jurisdiction is not the same as governing law. Applicable law for contractual and non-contractual obligations continues to be determined in the UK by the retained Rome I and Rome II rules, which are unilateral in operation and were not affected in the same way. A contract can be governed by English law and litigated somewhere else, or the reverse.

Why it matters

Insurance disputes are disproportionately cross-border, and the question of where a dispute will be heard often decides its commercial outcome. The regime changed in 2021 and changed again in 2025 when Hague 2019 came into force for the UK, so wordings, service-of-suit clauses and dispute resolution provisions written before those dates should be reviewed rather than rolled forward.

Frequently asked questions

Does Brussels Recast still apply to the UK?

No. It ceased to apply from 1 January 2021 and was revoked in UK law by the Civil Jurisdiction and Judgments (Amendment) (EU Exit) Regulations 2019. It continues to govern only proceedings instituted before the end of the transition period, under Article 67 of the Withdrawal Agreement.

Can a UK policyholder still sue its insurer in its own home courts under the insurance rules?

Not by virtue of Brussels Recast. Articles 10 to 16, which gave policyholders, insureds and beneficiaries that protective option, no longer apply in the UK. Any equivalent right now has to come from the jurisdiction clause in the contract itself.

Has the UK joined the Lugano Convention?

No. The UK applied to accede in April 2020, but accession requires the consent of all contracting parties and the European Union has not consented. Lugano does not apply to the UK, and material suggesting otherwise is out of date.

What replaced Brussels Recast for enforcing judgments?

For contracts with exclusive choice of court agreements, the 2005 Hague Choice of Court Convention, to which the UK has been a party in its own right since 1 January 2021. More broadly, the 2019 Hague Judgments Convention entered into force for the UK on 1 July 2025. Otherwise, the common law and any applicable bilateral treaty.

References

• Regulation (EU) No 1215/2012 (Brussels Recast), EUR-Lex
• The Civil Jurisdiction and Judgments (Amendment) (EU Exit) Regulations 2019, legislation.gov.uk
• Withdrawal Agreement, Article 67, legislation.gov.uk
• HCCH status table, 2005 Choice of Court Convention
• HCCH status table, 2019 Judgments Convention

Related entries

• Worldwide jurisdiction pi cover explained
• Professional indemnity policy territory explained
• Insurance arbitration
• Fos jurisdiction
• Commercial insurance uk

This entry is part of the Apex Insurance Wiki. It is general insurance information, not legal advice, and states the position as at August 2026. Last reviewed 2026-08-22. Next review: 2027-02-22. Always read the policy wording and take advice on your own facts.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.