Reinsurance And COVID-19

    March 2020

    Reinsurers, like insurers, are assessing their exposure to potential COVID-19 losses. There are, of course, many considerations. These include: (a) whether the loss comes within the terms and conditions of the underlying insurance policy; (b) whether a cedent’s loss payments were made on an ex gratia basis; (c) whether civil authority orders change the dynamic; (d) understanding which lines of business are affected; (e) whether reinsurance contracts allow for aggregation of COVID-19 losses as a single occurrence; and, (f) whether a reinsurer has too much COVID-19 concentration. Reinsurers are struggling with issues like maintaining a work force, either on site or remotely, and determining whether reinsurers are essential businesses under the myriad state business closure orders.


    A commentary article reprinted from the March 27, 2020 issue of Mealey’s Litigation Report: Reinsurance