Tag archives: Reinsurance

Excess reinsurances and the applicable jurisdiction regime

By Donald Dinnie on April 19, 2021 Posted in Insurance

The United Kingdom High Court in the judgment of 13 April 2021 granted the excess reinsurer’s UK interim anti-suit injunction in respect of the insurer/defendants’ claims in South Africa under the excess reinsurance agreements. Those claims in the English courts to the exclusion of the South African courts will represent the bulk of the defendants’ claims … Continue reading

Insurance claims and COVID-19

By Donald Dinnie on March 18, 2020 Posted in Insurance

If you haven’t already dusted off the business interruption, liability and event cancellation policies you have underwritten, or placed for an insured, and checked for coronavirus coverage, now is the time to do so. Exposure and benefits of both business interruption coverage (covering the insureds losses from an abrupt shutdown) and contingent business interruption coverage … Continue reading

Will we get reciprocal reinsurance arrangements?

By Patrick Bracher (ZA) on January 25, 2017 Posted in Insurance

The FSB’s Reinsurance Regulatory Review Position Paper in September 2016 sketches a reinsurance regime by which foreign reinsurers wishing to reinsure South African risks will have to register as a licensed branch in South Africa unless the foreign reinsurer is regulated by a country with an equivalent regulatory framework according to the FSB. Presumably the … Continue reading

Insurer’s failure to pay claims in time or fully may be a ‘wrongful act’

By Patrick Bracher (ZA) on June 1, 2016 Posted in Insurance

The Indiana Supreme Court in the US ruled that an insurer may be entitled to reinsurance coverage for nearly all its costs to defend and settle allegations that it failed to timeously or fully pay medical reimbursement claims. It was held that even though the company was engaging in an improper, unfair, and deceptive scheme … Continue reading

Follow the settlements clauses

By Donald Dinnie on September 22, 2015 Posted in Insurance

It is worth reminding ourselves about the useful findings in the UK Tokio Marine v Novae Corporate Underwriting case in 2013 regarding follow the settlements clauses: Where a retrocession by a reinsurer is expressed in general and unqualified terms it includes liability under all underlying policies. The reference to “loss occurrence” under the retrocession was construed … Continue reading

Russian sanctions could affect reinsurance

By Patrick Bracher (ZA) on February 9, 2015 Posted in Insurance

Insurers must remember that jurisdictions in which the world’s major insurers operate such as the EU, Switzerland and the USA have imposed sanctions against Russia. Russian corporations and shareholders may be named on a sanctions list which will affect the enforceability of any reinsurance of a policy where a listed person is indemnified. There are … Continue reading

Reinsurer’s liability and included defence costs

By Patrick Bracher (ZA) on January 28, 2015 Posted in Insurance

The English court of appeal has reminded us of two insurance principles that are worth remembering: If there is no “follow the settlements” clause in a reinsurance policy, in order to trigger liability the insured must establish that it is, as a matter of law, liable to the third party claimant and that the loss … Continue reading

Reinsurance warranty not to sail into storm is enforceable

By Patrick Bracher (ZA) on September 21, 2014 Posted in Insurance

A UK court in Amlin Corporate Member Ltd v Oriental Assurance Corporation held that reinsurers were entitled to enforce an express warranty clause that provided that cargo on the carrying vessel would not be covered if the vessel sailed out of port when there was a typhoon warning. The vessel did sail into a typhoon despite … Continue reading