High Court clarifies aggregation of Covid-19 losses at reinsurance level

English courts are favouring reinsureds by taking wide construction approach to the aggregation of Covid-19 losses

FOLLOWING the English Courts’ determinations that insurers should indemnify policyholders for Covid-related losses, there has been significant recent market engagement and intra-market dispute into whether and to what extent such losses may be recovered from an insurer’s reinsurer. The English courts have also begun to rule on these issues, most recently on April 23, 2026, in WRBC Corporate Member Ltd v AXA XL Syndicate Ltd & Ors [2026].