Landmark arbitration ruling upon the effect of original insured market loss warranties

18/02/13

Neil Calver QC and Stephen Midwinter recently acted for the successful Reinsurers in a high-profile insurance market arbitration (with a panel comprising a QC Chairman and two insurance market practitioners), which concerned the construction of an Original Insured Market Loss Warranty, contained in a Marine Offshore Non-Elemental ILW excess of loss reinsurance policy. The claim involved very substantial third-party liability losses arising out of a notorious man-made disaster and the issue of construction concerned the circumstances in which it was open to the parties to depart from the industry loss figure stated in the specified source. This is the second of two leading insurance cases concerning the proper construction of Original Insured Market Loss Warranties in excess of loss insurance/reinsurance polices in which Neil and Stephen have recently both been involved.