7 April 2020
The Covid-19 pandemic is likely to give rise to many insured losses, impacting many different classes of insurance. As insurers start paying out those claims, attention is likely to shift to reinsurance, and the extent to which losses may be aggregated for those purposes. This is an area where the law is complex, and the outcome can be very fact-specific and have significant consequences for reinsureds and reinsurers.
In this note Terry O'Neill, Clifford Chance consultant and author of The Law of Reinsurance, considers the precedents on this topic, and how they might apply in the current situation.