Reinsurance

Ghana Re’s Clement Owusu explains why reinsurance is the backbone of the insurance market.

In this article we identify the key characteristics of LOCs, how they work and the rights of the parties involved in the transaction. We then focus upon some legal and practical issues regarding LOCs in the current economic climate...

Equitas Ltd v Allstate Insurance Company: First instance 17 July 2008. Equitas reinsured the underwriting members of Lloyd's in respect of the 1992 and prior years of account. Allstate provided excess of loss reinsurance for the same risk. The parties entered into a commutation agreement in 2004 which released and discharged them from all liabilities under or related to the reinsurance agreements defined in the agreement. The commutation agreement was governed by English law and contained an exclusive English jurisdiction clause ...

Wasa International Insurance Company Limited v Lexington Insurance Company: Court of Appeal 29 February 2008. Lexington wrote environmental risk damage insurance for various sites of a US aluminium company, Alcoa. The period of the cover was expressed to be from 1 July 1977 to 1 July 1980. Cover was provided for $20m loss or damage arising from any occurrence ...