Court of Appeal confirms insured’s entitlement to a declaration of indemnity for cost of reinstatement of property damaged by fire

In Great Lakes Reinsurance (UK) SE v Western Trading Limited [2016] EWCA Civ 1003 the Court of Appeal confirmed that the court may make a declaration that an insured under a property insurance policy is entitled to be indemnified for the cost of reinstating property damaged by an insured peril, particularly in circumstances where it … Read more

A guide to the Solvency II remuneration rules and final PRA guidelines

The PRA has issued its final supervisory statement(SS10/16) on the remuneration rules under Solvency II. Because the Solvency II regime came into force on 1 January 2016, the PRA is clear that it expects firms to comply with the remuneration requirements in respect of the current financial year.  What is required of firms to ensure … Read more

Brexit – Key issues for lobbying by insurers

Our latest “at a glance” guide identifies, in two pages, some of the key issues insurers may want to ensure are on the negotiating team’s agenda.  It considers key issues from the perspective of both UK insurers accessing the EEA and EEA insurers accessing the UK. Read more

Insurance Act 2015 comes into force today

Today marks the day that the Insurance Act 2015 (the “Act”) comes into force.  This is the most significant reform of UK insurance law in over 100 years.  From today, the Act will apply to all new insurance and reinsurance policies that are entered into (including renewals) and to any variations agreed to existing policies … Read more

Brexit – Impact on EEA insurers and non-EEA headquartered groups

This briefing considers the position of EEA firms who wish to access the UK insurance market post-exit.  It also looks at the impact of Brexit on non-EEA headquartered groups that currently passport into the EEA via a UK subsidiary. This briefing supplements our previous note “Access to the single market” – an explanation for the (re)insurance sector, which considered … Read more

Better rights against insurers of ‘insolvent’ entities – finally here

A key question in any litigation is whether the defendant can satisfy a judgment.  Where the defendant is both insolvent and insured a further issue is whether the claimant can ultimately recover payment from the insurer.  This may be possible under the Third Parties (Rights against Insurers) Act 1930 (“1930 Act“) but there are a … Read more

Getting insured values wrong under the Insurance Act 2015: can insurers avoid the policy, apply average or even ‘double-dip’ with proportionate remedies?

Property and business interruption insurance policies commonly include an average clause permitting the insurer proportionately to reduce the value of the claim for underinsurance. The Insurance Act 2015 provides the insurer with proportionate remedies for breach of the duty of fair presentation, including a right to reduce claims if it would have charged a higher … Read more