Insurance: Passing the buck
The partnership between insurer and reinsurer has been brought into sharp focus by the recent case of Assicurazioni Generali v CGU. Simon Kilgour and Gavin Coull look at the implications of the case for both sides of the alliance
In every reinsurance arrangement, there is an element of partnership, particularly where the insurance and reinsurance are written back-to-back on fundamentally the same terms. This partnership is enshrined in the commonly used ‘follow the settlements’ wording, which binds reinsurers, subject to any express exceptions, to the settlements made by their reinsured (the original insurer) with the underlying insured. This type of wording has clear benefits for the reinsured, who can settle claims safe in the knowledge that the reinsurer will pay his share.
This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.
A PREMIUM SUBSCRIPTION PROVIDES:
- Trusted insight, news and analysis from the UK and across the globe
- Connections to senior business lawyers within the leading law firms and legal departments
- Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
- The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
- Optimized access on all of your devices: desktop, tablet and mobile
- Complete access to the site's full archive of more than 56,000 articles
Already have an account? Sign In Now
For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651