Reinsurance law – Mind the gap!
Wasa v Lexington was one of the final decisions of the House of Lords. It is a significant reinsurance case, which creates the risk of a potential ‘gap’ in the reinsurance protection of an insurer. The gap may arise where a different system of law governs the insurer’s obligations to its insured under the original insurance policy, to the system of law which governs the reinsurance contract. The case is one of relevance to insurers and reinsurers carrying on business in Australia.
Significant cases, legislation or articles referred to
- Wasa International Insurance Company v Lexington Insurance Company  UKHL 40
- Vesta v Butcher  4C 852
- Charter Reinsurance Co Ltd v Fagan  AC 313
- APRA Prudential Standard GPS 230 Reinsurance Management