Dispute Resolution analysis: Tom Weitzman QC and Nathaniel Bird, barristers at 3 Verulam Building, who acted for the claimants seeking declaratory relief in the following judgment, discuss the importance of ensuring that a reinsurance policy contains a cut-through clause and that the application of the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999) is not excluded.

Law360, London: Company bosses and their insurers could face increased claims next year from a predicted rise in corporate insolvencies and class actions, Allianz warned on 5 December 2024.

Some employers offer benefits to their employees in the form of insured benefits, such as private medical insurance, permanent health insurance (PHI), life insurance and directors' and officers' liability insurance. These benefit both employer and employee, since the cost of providing such insurance is generally far lower for an organisation than it would be for individuals to provide for themselves. This Practice Note gives a brief overview of the types of insured benefits that employers typically offer to their employees, and the issues relating to them. For sample contract terms, see Precedent: Clauses—insurance and other benefits, Clause 13 of Precedent: Executive service agreement and Clause 14 of Precedent: Employment contract basic version. For further information on directors' and officers' liability insurance, see Practice Notes: Protecting a director from liability and Directors and officers insurance policies. Insurance benefits as 'wages' The provision of medical insurance, PHI or life insurance was previously treated as a benefit in kind not provided by way of a voucher etc, and was therefore not treated as ‘wages’ for the purposes of sections 13–27 of the

Who insures? Joint insurance From the tenant’s perspective, the ideal position is that the premises are insured in the joint names of the landlord and the tenant. The advantages of this for the tenant are: • both parties will be informed before the policy lapses • any insurance money will be paid jointly to the landlord and tenant, giving the tenant some control over the spending of the insurance money (and, therefore, the reinstatement of the premises) • there are no adverse consequences if the landlord goes into liquidation before reinstatement is completed • the insurers cannot exercise their right of ‘subrogation’ (see Subrogation below) against the tenant in relation to damage caused or contributed to by the tenant However, in many instances insurance in joint names will not be practical. All joint tenants need to be involved in any claim, which would mean that: • if the landlord owns multiple properties, all of which are insured with a single insurer under a single block policy on which all the landlord’s tenants are named as joint insured, the

What are insurance linked securities? Insurance Linked Securities (ILS) are an alternative form of risk mitigation for insurance and reinsurance firms. The Financial Conduct Authority (FCA) describes ILS as ‘financial instruments where the value of the security is linked to an insurable loss event’. In contrast to conventional cover arranged with a reinsurance company, ILS offer insurance and reinsurance firms a means of transferring risk to the capital markets. An ILS transaction typically involves the following steps: For further information, see Practice Note: UK regulation of insurance-linked securities. What is an insurance special purpose vehicle? An insurance special purpose vehicle (ISPV) is a mechanism or entity created for the sole purpose of taking on specified contractual risks from an insurance or reinsurance firm. If an ISPV concurrently takes on more than one contract of risk transfer from one or more 'cedants' they are known as multi-arrangement ISPVs (MISPVs). Entities wishing to operate in the UK as a ISPV must apply to the Prudential Regulation Authority (PRA) for permission

Law360, London: Insurers expect to face a total of US$1.5bn in losses from the Baltimore Bridge disaster during 2024, according to broker Gallagher Re.

This term used to describe regulated activities when the regulated investment is a contract of insurance.

Anyone carrying on insurance mediation activities must appoint an insurance mediation officer.

If there is no express provision regarding insurance in an agreement for lease then, under the open contract rules: • neither party is obliged to insure the property, and • risk passes to the tenant on exchange of the agreement for lease If the agreement for lease incorporates the Standard Commercial Property Conditions (Second or Third Editions) or the Standard Conditions of Sale (5th Edition), the default position under those Conditions (unless modified by the terms of the agreement) is the same: the seller/landlord is not required to insure the property and so risk passes to the buyer/tenant on exchange. Consequences of either of those scenarios In the case of an unconditional agreement for lease, this means that the tenant will be obliged to take the lease even if the property is destroyed between exchange and completion. This outcome will certainly not suit the tenant. Equally, however, if the tenant refuses to complete the lease and an order for specific performance is refused, this outcome may well not suit the landlord either, as the

These clauses are for use in relation to Precedent: Outsourcing agreement—long form when used in relation to the outsourcing of services by a regulated insurance firm. Please see the drafting notes for specific instructions and further guidance. 1 Definitions 1.1 In this Agreement, unless the context otherwise requires, capitalised terms shall have the meanings set out below. Confidential Information • any information which is marked as being confidential or which may reasonably be regarded as confidential, together with all information obtained from the party making the disclosure (including, in the case of the Customer, its Affiliates) that relates to the business, affairs, products, trade secrets, technology, know-how, methodology of supply, developments, finances, employees, customers, policy holders, beneficiaries (where relevant), suppliers or any other contracting parties of or relating to either party, including the subject matter of this Agreement and any Material; Disaster Recovery and Business Continuity Plan • means a written document detailing the procedures to be followed and actions to be undertaken by the Supplier in order to: (i) anticipate Disasters;

Law360: Insurance payouts for global natural disasters such as hurricanes, typhoons, earthquakes and floods fell to US$95bn in 2023, a 24% decrease on the US$125bn paid in the previous year, reinsurance giant Munich Re said 9 January 2024.

Law360, Expert analysis: On 9 February 2024, the High Court of Justice of England and Wales handed down a decision in Unipolsai Assicurazioni SpA v Covéa Insurance plc, which addressed an unusual reinsurance dispute concerning coverage for the initial coronavirus (COVID-19) lockdown. Daniel J Healy, partner, at Brown Rudnick LLP considers the key arguments and rulings from the case.