Reinsurers Kept on the Hook Despite Cedent’s Settlement in $28 Million Kuwait Oil Claim

Beazley Underwriting Limited and others v Al Ahleia Insurance Company and other companies [2013] EWHC 677 (Comm)

This case centers on the relationship between cedents and reinsurers and compliance with a claims control clause which requires the cedent to allow the reinsurers to control aspects of claim handling. In this case the claimant reinsurers claim they are not liable under the reinsurance policy while the cedents assert that the reinsurer owes coverage.

By way of background, on October 3, 2005 the Kuwait Oil Company entered …

Continue Reading