Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Reinsurance definition

What does Reinsurance mean? Reinsurance is the transfer by an insurer (the cedant) of part of its insurance risk to another insurer (the reinsurer) under a separate contract, to manage exposure, protect capital and satisfy prudential requirements. While regulatory definitions exist (for example under Solvency II and UK financial services legislation), the term is chiefly a contractual and market expression developed through practice and case law. Key structures include: - Proportional reinsurance (such as quota share or surplus), where premiums, losses and expenses are shared at an agreed percentage. - Non‑proportional reinsurance (such as excess of loss or stop loss), which responds once the cedant’s retention/attachment point...

Subrogation in Insurance and Reinsurance: Legal Basis, Equitable Lien, Top-down Recoveries, Co‑insureds and Waivers, Limits and Practical Guidance on Pursuit, Allocation and Interaction with Assignment, Contribution and Indemnities

Published by a LexisNexis Insurance & Reinsurance expert

Practice notes

This Practice Note offers guidance on subrogation in the insurance context. It sets out the legal basis, Purpose and practical operation of subrogation, and indicates how to tell rights of subrogation apart from other mechanisms such as assignment or contribution. It also considers common situations, including subrogation against co-insureds, the use of express subrogation clauses and waivers of subrogation. In addition, it covers how recoveries are allocated and the insured’s duty to co-operate with insurers.

What is the right of subrogation?

In insurance and Reinsurance, the right of subrogation allows an insurer or reinsurer, once it has indemnified the (re)insured, to step into that party’s position and bring proceedings in the (re)insured’s name. For this Practice Note, ‘insurer’ should be read as ‘(re)insurer’ and ‘insured’ as ‘(re)insured’. The insurer may then exercise any of the insured’s rights or remedies against Third parties arising from the insured event. After indemnity, the extent of the insurer’s rights and remedies is coextensive with the insured’s against third parties for the relevant loss, including any right in contract (performed or unperformed), tort,...

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Eleanor Ruiz

Reed Smith LLP

Year of Qualified: England & Wales - 2014 and Hong Kong - 2017 Eleanor specializes in complex commercial disputes, insurance recovery and insolvency-related disputes, including professional negligence claims. She represents a broad range of clients, including liquidators, investment and retail banks, corporations, insurance companies and brokers. Eleanor trained and qualified at Reed Smith in London in the Global Commercial Disputes Group, handling general commercial disputes and insurance recovery matters. In 2016 she moved to Hong Kong, where she joined a specialist investigative dispute resolution practice and qualified as a solicitor of the High Court of Hong Kong. There she worked on insolvencies being litigated in the Hong Kong courts, including professional negligence claims involving directors, auditors and other professional service providers. Eleanor returned to Reed Smith in London in 2019, re-joining the Global Commercial Disputes Group. Eleanor was seconded to one of the UK's...

Mark Pring

Reed Smith LLP

Mark is a London-based partner in Reed Smith's Insurance Recovery Group, a market-leading team of coverage experts operating internationally who are committed to providing support only to insured policyholders. Mark has had extensive experience, for nearly 30 years, in handling high-value, multi-jurisdictional insurance and other commercial disputes (including cross-border litigation and arbitration proceedings). In the insurance context, that experience has covered a range of non-marine and marine risks - including professional indemnity, financial institutions, directors' and officers' liability, property, energy and construction risks. Mark's practice also increasingly involves "risk management" work, including advising on corporate governance matters, reviewing anti-corruption policies and procedures and conducting reviews of insurance arrangements. Having previously lived and worked in the region, Mark continues to work closely with clients from, and investors into, Middle East jurisdictions. He has also developed a strong reputation for assisting...

Web page updated on 21/05/2026

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