Reinsurance in UK Law

Leading Cases
  • Insurance Company of Africa v Scor (UK) Reinsurance Company Ltd
    • Court of Appeal
    • 22 Nov 1984

    In my judgment, the effect of a clause binding reinsurers to follow settlements of the insurers, is that the reinsurers agree to indemnify insurers in the event that they settle a claim by their assured, i.e. when they dispose, or bind themselves to dispose, of a claim, whether by reason of admission or compromise, provided that the claim so recognised by them falls within the risks covered by the policy of reinsurance as a matter of law, and provided also that in settling the claim the insurers have acted honestly and have taken all proper and businesslike steps in making the settlement.

  • Forsikringsaktieselskapet Vesta v Butcher and Others (First Appeal)
    • House of Lords
    • 26 Ene 1989

    Vesta became liable for a loss under the insurance policy and the underwriters must perform and observe their promise in the reinsurance policy. The effect of a warranty in the reinsurance policy is governed by the effect of the warranty in the insurance poliicy because the reinsurance policy is a contract by the underwriters to indemnify Vesta against liability under the insurance policy.

    A reinsurer could, of course, make a special contract with an insurer and agree only to reinsure some of the risks covered by the policy of insurance, leaving the insurer to bear the full cost of the other risks. Such a contract would I believe be wholly exceptional, a departure from the normal understanding of the back-to-back nature of reinsurance and would require to be spelt out in clear terms.

  • Assicurazioni Generali SpA v CGU International Insurance Plc and Others
    • Queen's Bench Division (Commercial Court)
    • 02 May 2003

    The Defendants are bound by all settlements made by Generali (except ex gratia and without prejudice settlements) (a) provided that the claims so recognised by Generali fall within the risks covered by the contract of reinsurance as a matter of law: by which is meant in this context as explained above, provided that the claims were settled on a basis which, if and assuming it to be valid, falls within the risks covered by Generali's outward contract of reinsurance as a matter of law; and (b) provided that Generali acted honestly and took all proper and businesslike steps in making such settlements.

  • Commercial Union Assurance Company Plc v NRG Victory Reinsurance Ltd
    • Court of Appeal
    • 16 Mar 1998

    In my view, the matter is better treated as a question of implication into the reinsurance contract, the implied term being that, absent any provision to contrary effect, the insurer will treat the decision of a foreign court of competent jurisdiction as to the liability of the reinsured to his original insured as binding, subject only to reversal on appeal and the limits which I have mentioned.

  • Assicurazioni Generali SpA v CGU International Insurance Plc and Others
    • Court of Appeal
    • 06 Abr 2004

    It gives substance to the fact that the reinsurer cannot require the insurer to prove that the assured's claim was in fact covered by the original policy, but requires him to show that the basis on which he settled it was one which fell within the terms of the reinsurance as a matter of law or arguably did so. This and the need for the insurer to have acted honestly and taken all reasonable and proper steps in settling the claim provide adequate protection for the reinsurer.

  • Axa Reinsurance (UK) Plc v Field
    • House of Lords
    • 20 Jun 1996

    In ordinary speech, an event is something which happens at a particular time, at a particular place, in a particular way. A cause is to my mind something altogether less constricted. It can be a continuing state of affairs; it can be the absence of something happening. Equally, the word "originating" was in my view consciously chosen to open up the widest possible search for a unifying factor in the history of the losses which it is sought to aggregate.

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Books & Journal Articles
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Law Firm Commentaries
  • Trade Credit Reinsurance Scheme
    • Mondaq UK
    • 17 de Marzo de 2021
  • March 2017 Reinsurance Newsletter
    • LexBlog United Kingdom
    • Squire Patton Boggs
    • 1 de Marzo de 2017
    This quarter’s Squire Patton Boggs Reinsurance Newsletter focuses on the certified question sent to the New York Court of Appeals by the Second Circuit on Bellefonte. It also features regulatory up...
  • Insurance and Reinsurance Update
    • JD Supra United Kingdom
    • Bryan Cave Leighton Paisner
    • 4 de Marzo de 2019
    This is our pick of the key recent legal and regulatory issues affecting the insurance and reinsurance sector. Non Party PI Insurers Liable for Costs - In the January 2019 ca...
  • Reinsurance Implications of FCA Test Case
    • JD Supra United Kingdom
    • Bryan Cave Leighton Paisner
    • 21 de Septiembre de 2020
    Insurers seem confident that reinsurers will take their share of the impact of the Court’s judgment. So what are the immediate reinsurance issues arising from the decision?
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