Reinsurance: catastrophe cover under excess of loss treaties

It was inevitable that the massive Covid-19 liabilities faced by business interruption insurers would give rise to disputes with reinsurers. In UnipolSai Assicurazioni SpA v Covéa Insurance plc; Markel International Insurance Co Ltd v General Reinsurance AG [2024] EWHC 253 (Comm) there were appeals under section 69 of the Arbitration Act 1996 against two arbitration awards on the meaning of excess of loss treaties providing cover for catastrophes.

There were two issues: was Covid-19 a "catastrophe"; and how did the "hours clause" apply to non-damage business interruption claims? Both matters were resolved by FoxtonJ in favour of the reinsureds.