Reinsurance: proof of loss

The Court of Appeal in AstraZeneca Insurance Co Ltd v XL Insurance (Bermuda) Ltd and Another [2013] EWCA Civ 1660 has upheld the first instance decision of Flaux J [2013] Lloyd’s Rep IR 290. The case was primarily about the recovery from reinsurers of defence costs paid by the reinsured, but it raised important issues of principle as regards the trigger of coverage under a liability policy (and, by analogy, a reinsurance contract).

The judgment of the Court of Appeal skims over at least one important issue discussed at length by the trial judge; namely, whether a foreign judgment against the policyholder is always binding on the (re)insurers.