Retrocession meaning

HM Treasury has released its so-called retrocession accord with Pool Reinsurance Company (Pool Re), featuring adjustments first proposed in a formal 2022 review. Under the deal, insurers will carry greater risk retentions for standard types of terrorism. The reinsurer benefits from unlimited state guarantees to settle claims that surpass its £6.6bn fund, which is financed by members. However, HM Treasury is increasingly uneasy about the potential hit to the public purse from a large terror event. HM Treasury also confirmed that the arrangement will embed the reforms set out in its 2022 strategic review of Pool Re during that year as well...

In a defence lodged on 28 May 2025, Chubb European Group plc told the High Court it has no obligation to pay Aegis Motor Insurance Ltd, which reinsured AIG. Chubb says AIG should not have paid US$2.9m to settle a New York case arising from a car crash involving Pulitzer prize-nominated journalist Sarah Maslin Nir and her friend, as the underlying policy was intended to respond only to disputes in the UK. The defence asserts that neither AIG’s loss settlement nor Aegis’s payment under its reinsurance binder fell within the terms and conditions of the AIG motor policy, and that AIG had no entitlement to seek reimbursement...

The brokerage heavyweight reported that ‘favourable supply dynamics’ have appeared in 2024, spurring sharper price competition across placements. Insurance is inherently cyclical in nature for buyers and carriers alike. After heavy loss years, underwriters usually lift rates and pull back capacity, creating what is termed a hard market phase. When claims ease and profitability returns, premiums tend to come down and cover widens, signalling a softening market cycle. Howden noted that falling prices—the first since 2017—indicated that the persistently...

Practice Note This Practice Note reviews how arbitration agreements are incorporated into contracts governed by English and Welsh law (using England and English as shorthand). Further materials on arbitration agreements appear on the right-hand side of the page, including Practice Note: Arbitration agreements—the in writing requirement. An oral understanding does not, however, strip a party of access to the courts, since either party may cancel the authority of the arbitrator appointed pursuant to such an arrangement. For an arbitration clause to have legal effect, it must be duly incorporated into the contract it concerns. Under section 6(2) of the Arbitration Act 1996 (AA 1996), a reference in a contract to a written arbitration clause, or to another document that contains such a clause, will itself amount to an arbitration agreement where the reference is expressed in terms that make the clause part of the contract. In short, effectiveness depends on clear incorporation by reference...

This Practice Note sets out practical guidance concerning the financial services trade commitments entered into by Australia and the UK under the Aus-UK Free Trade Agreement (FTA). In doing so, it explains national treatment, most-favoured-nation (MFN) obligations, market access disciplines, the Parties’ specific undertakings, non-conforming measures, and applicable exceptions. Introduction The Parties to the Aus-UK FTA agreed a range of trade disciplines, including on trade in goods, services, trade remedies, sanitary and phytosanitary rules, and technical barriers to trade. They also adopted general commitments on trade in services. For commentary on those, see Practice Note: Trade in services in the Aus-UK FTA. Those commitments do not extend to trade in financial services. Instead, the Parties included tailored provisions on trade in financial services in chapter 9 of the Aus-UK FTA. These are distinct from the general services commitments referenced above. They apply only to financial services trade specifically. Which financial services are covered by the Aus-UK FTA? The Aus-UK FTA defines financial services as either insurance...

This is a glossary of common words and expressions used in Scottish insolvency law with the nearest England and Wales insolvency law equivalent (where relevant) Absolute insolvency Meaning: When a person’s liabilities are greater than the overall worth of their assets. Nearest English equivalent: Balance sheet insolvency. Accountant in Bankruptcy (AiB) Meaning: A Scottish Government agency overseeing the regulation of personal bankruptcy (sequestration and Protected Trust Deeds) in Scotland, and able to serve as trustee in sequestrations where no insolvency practitioner is appointed. It also maintains records of corporate insolvencies in Scotland (receivership and liquidations only) but does not perform the role of Official Receiver. See Practice Note: Scotland: the Accountant in Bankruptcy. Nearest English equivalent: N/A. Accountant of Court Meaning: A court-appointed officer within Scottish Courts and Tribunals who administers funds consigned to the Accountant of Court pursuant to a Court of Session interlocutor or during liquidation proceedings. They oversee Judicial Factors or Administrators appointed by the Court to manage estates...