Reinsurance and the Law of Aggregation: Event, Occurrence, Cause

In excess of loss reinsurance, the reinsurer covers the amount of a loss exceeding the policy's deductible but not piercing its cover limit. Aggregation clauses are used to aggregate multiple individual losses into one loss for presenting to the reinsurer. This book examines each element of an aggregation mechanism, tracing the inconsistent usage of aggregation language in the markets and scrutinizing the tests developed by courts and arbitral tribunals. It seeks to support insurers, reinsurers, brokers, and lawyers in drafting aggregation clauses and settling claims.

Format: Paperback / softback
Length: 236 pages
Publication date: 09 January 2023
Publisher: Taylor & Francis Ltd

In addition to loss reinsurance, the reinsurer covers the amount of a loss exceeding the policy's deductible but not piercing its cover limit. Consequently, the policy's quantitative scope of cover is significantly influenced by the parties' agreement on a deductible and a cover limit. However, determining whether a loss has exceeded the deductible or cover limit requires an informed understanding of what constitutes one loss. In so-called aggregation clauses, the parties to (re-)insurance contracts regularly provide that multiple individual losses are to be added together for presenting one loss to the reinsurer when they arise from the same event, occurrence, catastrophe, cause, or accident. Aggregation mechanisms are one of the core instruments for structuring reinsurance contracts.

This book systematically examines each element of an aggregation mechanism, tracing the inconsistent usage of aggregation language in the markets and scrutinizing the tests developed by courts and arbitral tribunals. In doing so, it seeks to support insurers, reinsurers, brokers, and lawyers in drafting aggregation clauses and in settling claims.

Focusing on an analysis of primary sources, particularly judicial decisions, the book interprets each judicial decision to describe a system of inter-related rules, collating, organizing, and describing the English law of aggregation as applied by the courts and arbitral tribunals. It further draws a comparison between the English position and the corresponding rules in the Principles of Reinsurance Contract Law (PRICL).

Weight: 453g
Dimension: 234 x 156 (mm)
ISBN-13: 9780367688684