In a UK decision it was argued that the position in which the credit insurer ended up was inherently suspicious because it was ‘circular’ in that, if the insurer incurred liability to one person, it could recover from the sole shareholder of the other party under a counter-indemnity. The court said:

“However, that is the nature of credit insurance. A credit insurer does not take the absolute risk of the insured liability. When it enters into a commitment to a creditor, it matches it with an indemnity from the debtor, such that the risk it takes is that the recovery from the debtor will be less than the payment out to the creditor. ‘Circularity’ in this sense is inherent in the nature of the business.”
That is equally true in South African law.

Caledonian Maritime Assets Limited v HCC International Insurance Co PLC [2022] EWHC164 (Ch) (28 January 2022)