Allocation In the context of insurance and reinsurance, ‘allocation’ is the determination of which insurance policy a loss or part of a loss is covered by. In most insurance claims the issue does not arise. If a driver crashes their car, their automobile insurance policy in place as at the date of the crash will respond. However, in the minority of cases where the issue does arise, it can be very significant both in relation to a (re)insurer's ‘inwards’ liability and the availability of its ‘outwards’ reinsurance. • Take for example, a company which employs an employee for 40 years. Throughout those 40 years the employee is exposed to asbestos and, following retirement, develops mesothelioma and dies. The estate sues the former employer. The company had workers compensation/employers' liability insurance in place throughout the period of the employee's employment, but which policy, if any, should respond to the claim? • What about an insurance