The Arbitration Act 2025 – keeping legal London ‘match fit’ for market dispute resolution

London has long been a hub for arbitration, especially in reinsurance and insurance disputes. What is striking in recent years – accelerated by the Covid era – is the political determination to keep legal London ‘match fit’ as the venue of choice for international dispute resolution.

That commitment is underscored by the Arbitration Act 2025, which came into force on 1 August 2025. The Act introduces key reforms designed to ensure London maintains its pre-eminence, despite increasing global competition.

Headline reforms:

1. Clarity on governing law

• Where a contract’s governing law differs from the law of the seat, the default is now that the arbitration agreement follows the law of the seat – unless the parties expressly agree otherwise. This simplifies the test and aligns with leading institutional rules, such as those of the LCIA (London Court of International Arbitration).

2. Enhanced arbitrator duties and protections

• Arbitrators must disclose any circumstances raising doubts about impartiality, before and during their appointment.
• Immunity is strengthened, extending to resignation (unless unreasonable) and liability is limited in removal proceedings absent bad faith. This balances transparency with protection for arbitrators.

3. Streamlined case management

• Arbitrators have statutory power to summarily dismiss claims or defences with no real prospect of success, unless excluded by agreement – bringing arbitration closer to court-style summary judgment.
• Emergency arbitrator orders now carry statutory recognition and enforceability. Courts can also issue supportive orders against third parties (e.g., to preserve evidence).

4. Curtailing jurisdictional challenges

• Once a tribunal rules on jurisdiction, courts will not generally entertain new arguments or evidence on that point. This promotes efficiency and finality, limiting tactical litigation.

These reforms land at a critical moment. Arbitration centres in Asia, particularly Singapore, continue to compete aggressively, offering innovations such as med/arb (mediation-arbitration), which blends consensual settlement with binding outcomes.

The Arbitration Act 2025 is more than technical reform – it is a clear statement of political will. The UK government recognises arbitration as a strategic economic asset, contributing materially to the domestic economy, and is intent on reinforcing London’s reputation as the global centre of choice for market dispute resolution.