Reinsurance

Re-opening Settlements and Commutations

(BCCI v Ali and Khan [2001] 1 All ER 961, June issue of Insurance Law Monthly)

In the June issue of Insurance Law Monthly there was some discussion of the implications of the decision of the House of Lords in BCCI v Ali and Khan [2001] 1 All ER 961 for the insurance market. The problem of re-opening settlements is equally acute at the reinsurance level, where insurers and their reinsurers often enter into a commutation whereby the complex array of rights and liabilities under a reinsurance treaty are settled for an agreed amount on a full and final basis. Does BCCI affect commutations? This question is addressed by Michael Mendelowitz of Barlow Lyde & Gilbert.