Insurable interest

Insurable interest and reinsurance agreements

The Court of Appeal has, in Feasey v Sun Life Assurance Co of Canada [2003] EWCA Civ 885, forthcoming in [2003] Lloyd’s Rep IR, affirmed the first instance decision of Langley J [2002] Lloyd’s Rep IR 835 and has by a majority held that a P&I club possessed sufficient insurable interest in the lives of employees of its member shipowners to support reinsurance in the form of life cover. The Court of Appeal’s reasoning was somewhat different from that of the trial judge and addressed wider issues underlying the judicial recognition of wider forms of insurable interest.