Insurance Post

Cedents to London: read this now

A recent decision from the Commercial Court in the UK demonstrates that follow-the-settlements clauses do not necessarily have the effect of automatically binding reinsurers to a settlement. The case will be of interest to both reinsureds and reinsurers, as it deals with the situation where there is inconsistent coverage under the insurance and the reinsurance despite the parties' intention for back-to-back cover.The case was Wasa International Insurance Company and AGF Insurance v Lexington