Reinsurance: mesothelioma and spiking

The Court of Appeal in Equitas Insurance Ltd v Municipal Mutual Insurance Ltd [2019] EWCA Civ 718 has refused to allow a reinsured with the right to claim in any one of a number of years of coverage an unfettered discretion as to how its losses are to be allocated. In so deciding, the Court of Appeal has refused to extend the ruling of the Supreme Court in International Energy Group Ltd v Zurich Insurance plc UK Branch [2015] Lloyd’s Rep IR 598 to the reinsurance level. It is inevitable that permission will be sought from the Court of Appeal to appeal the matter to the Supreme Court.

Liability in tort