The prudent un-reinsured

Some 15 years after the Exxon Valdez ran aground, the court cases are yet to be finalised. The case was back in court in December with rulings expected at the end of January. Andrew Symons, a partner in the insurance and reinsurance group of London law firm CMS Cameron McKenna, looks at the latest hearing.

A CT as a prudent un-reinsured’ is an often heard message from reinsurers, but can be of little comfort to an insurer faced with a large claim and proceedings in overseas jurisdictions. Court-ordered mediation or some form of alternative dispute resolution is increasingly common. There is a general expectation that settling disputes is preferable for all parties, rather than allowing the court to intervene, and insurers come under increasing pressure to settle.