The sum paid or payable by a litigant who has taken out an 'after the event' insurance policy taken out in respect of particular litigation and covering against the risk of losing that litigation.

Archived: This Practice Note was archived and is not maintained. An insurance premium is the sum paid for insurance or reinsurance cover and is the consideration paid by the (re)insured for the (re)insurer’s contractual obligation to indemnify it against risks specified in the policy. The premium is used by (re)insurers primarily to: • establish reserves for known and unknown losses • pay claims • generate investment returns • purchase reinsurance • comply with regulatory solvency margin requirements • pay Insurance Premium Tax (IPT) to HMRC. For more information on IPT, see Practice Note: Insurance premium tax Calculating the insurance premium It is the role of underwriters and actuaries to calculate the premium in accordance with their assessment of the risk. How it is calculated depends greatly on the particular class of insurance. Calculating a life and health premium is mainly a mathematical task carried out by actuaries based on large data sets of longevity and morbidity statistics, taking into account prevailing and long-term inflation rates and anticipated returns on investments. Certain classes of general

Insurance premium tax (IPT) is an indirect tax on insurance premiums. Unless an exemption applies, IPT is charged as a percentage of the premium paid on certain types of insurance policies issued by certain types of insurers covering risks located in the UK. The economic cost of IPT is typically borne by the policyholder, but the tax itself is collected and paid to HMRC by the insurer by reference accounting periods of three months. Strictly speaking, the premium includes IPT. Accordingly, the legislation distinguishes between the premium and the ‘chargeable amount’ (the amount before IPT is added). The premium is the chargeable amount plus IPT. For more information on the meaning of ‘premium’ for IPT purposes, see: Premium below. IPT is chargeable at 12% of the chargeable amount, the standard rate, unless the premium is liable to the higher rate of 20%. Legislation and guidance The main sources of legislation are: • the Finance Act 1994 (FA 1994), and • the Insurance Premium Tax Regulations 1994, SI 1994/1774

Law360, London: The insurance industry could be forced to eventually correct the trend of falling prices for property cover if natural catastrophe losses continue to mount, Morningstar DBRS said on 15 September 2025.

This Practice Note sets out the UK regime for product governance that insurance firms must comply with for the manufacture and distribution of insurance products and covers how the requirements that were introduced by the Insurance Distribution Directive (Directive (EU) 2016/97)) (IDD) were implemented in the UK, as set out in Chapter 4 of the Financial Conduct Authority’s (FCA’s) Product Intervention and Product Governance sourcebook (PROD 4), and the current status of these requirements following the UK’s withdrawal from the EU. Background IDD product oversight and governance requirements The IDD introduced product oversight and governance (POG) requirements for insurers and intermediaries that manufacture insurance products for sale to customers. Under Article 25 of the IDD, firms must maintain, operate and review a product approval process for each insurance product (and for any significant adaptations of an existing product), before it is marketed or distributed. The approval process must be proportionate and appropriate to the nature of the product, identify a target market for each product, assess all relevant risks to that target market and take reasonable

This Practice Note sets out the common law and discusses usual drafting provisions in commercial leases in Scotland dealing with landlord and tenant obligations in relation to insurance, insured and uninsured risk, reinstatement, rent abatement and termination where the property is damaged or destroyed. If the lease is silent about repairing obligations, the landlord is required to make good any want of repair within a reasonable time of the tenant bringing the need for the repair to the landlord’s attention, see Practice Notes: Repair clauses in commercial leases in Scotland—Repair under the common law and Repair and dilapidation disputes—commercial leases in Scotland and Repair: Stair Memorial Encyclopaedia [501]. If the property is destroyed or is so damaged as to be unfit for use and occupancy, then the lease is terminated by the rule of rei interitus. It is usual for leases to contract out of this rule, by saying the lease will continue in force if the premises are damaged or destroyed by any cause, see Practice Note: Repair clauses in commercial

In real estate finance transactions, the property is the main asset of the borrower and the security package taken by the lender will be based around taking adequate security over that property. As the property itself is of utmost importance, the lender will want to ensure that the insurance in place over the property is adequate and the lender will also want to take security over the borrower’s right to any insurance proceeds (see Practice Note: Security in real estate finance transactions). There will be extensive insurance obligations on the borrower set out in the financing documentation, typically in the facility agreement or the security documents. The Loan Market Association (LMA) has clauses to cover these provisions in its: • single currency term facility agreement for real estate finance multi-property investment transactions (LMA Investment REF Facility Agreement), and • single currency term facility agreement for real estate finance single property development transactions (LMA Development REF Facility Agreement), together the LMA REF Facility Agreements. Insurance cover in a real estate finance transaction The LMA REF

Law360, London: Almost all businesses in Ireland claim they have not benefited from sweeping insurance reforms introduced by the country's government in recent years, campaigners said 25 June 2025.

This Practice Note explains insurance industry practice in relation to loss reserves, insurance claims data and loss development triangles in general insurance. It provides information about the significance of this data for insurers and guidance for lawyers regarding the relevance of claims data in insurance disputes. This Practice Note also explains terminology relating to loss reserves, including incurred claims, outstanding loss reserves (OSLR), incurred but not reported (IBNR) and incurred but not enough reported (IBNER). Life and health insurance reserving is based on very large samples of mortality and morbidity statistics. Setting reserves for life and health insurance tends to be more of a mathematical process than for most types of general insurance. Calculation of life and health reserves are beyond the scope of this Practice Note which is focused on general insurance. References in this Practice Note to ‘insurers’ also apply to ‘reinsurers’ unless the context indicates otherwise. Loss reserves When a policyholder notifies a loss or potential loss under an insurance policy, the insurer will typically make a preliminary

Law360, Expert analysis: On 2 May 2024, in Project Angel Bidco Ltd (In Administration) v Axis Managing Agency Ltd, the Court of Appeal of England and Wales upheld the lower court's October 2023 decision and dismissed appeal of Project Angel Bidco Ltd, the insured. Written by Joseph Moore, partner, and Laura McCann, senior associate, at Travers Smith LLP.

Law360: It is a truth universally acknowledged that insurance policy documents are frequently poorly drafted. Inconsistent use of defined terms, and overlapping and inconsistent insuring clauses, are commonplace and the cause of much head-scratching among stakeholders when claims fall to be considered. Written by Aaron Le Marquer, partner, at Stewarts Law LLP.

Law360, London: The global insurance industry could face a combined loss of approximately US$200m from the fire that tore through a high-rise housing complex in Hong Kong during November 2025, according to AM Best that specialises in the sector.