Reinsurance Aggregation and COVID-19 Losses

aggregation, Blog, Contract Interpretation 1 Minute
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Insurers are paying COVID-19-related claims on all sorts of insurance policies, including workers’ compensation, directors and officers, general liability, event and travel cancellation, production stop loss, accident and health and many others. While the focus of attention is on business interruption, those are not the losses being paid on a daily basis.

In my latest Reinsurance Commentary for IRMI.com, I discuss the issue of whether insurance companies that pay individual losses related to COVID-19 will be able to aggregate those individual losses as a single loss occurrence for reinsurance purposes under catastrophic or excess-of-loss reinsurance contracts that allow for aggregation.

You can view my Commentary here.

Published by Larry P. Schiffer, Schiffer Law & Consulting PLLC

After 38-years with boutique and global law firms, Larry P. Schiffer launched an independent legal and consulting practice, Schiffer Law & Consulting PLLC, where he provides services as a lawyer, counselor, consultant, mediator, arbitrator and expert witness. He practices commercial, insurance, and reinsurance litigation, arbitration, and mediation. He provides advice on a wide variety of insurance and reinsurance issues, including claims and disputes, policy wording analysis and drafting, insurance insolvency issues, due diligence for transactions and have insurance or reinsurance components, insurance and reinsurance education and other advice. He is available to appear for clients outside of NY at mediations and conferences as needed on a per diem basis. He is active in legal and trade associations where he has held various leadership positions. He has lectured and has been widely published on reinsurance and other insurance topics. He serves as an Expert Commentator on reinsurance for IRMI.com and co-authored the chapter on reinsurance in the New York State Bar Association’s Insurance Law Practice treatise. He is the editor of the ARIAS•U.S. Quarterly. Mr. Schiffer received his J.D. from Albany Law School, where he graduated cum laude, was a member of the Albany Law Review and a member of the Justinian Society, and received his B.A. magna cum laude from Brooklyn College of the City University of New York. He was admitted to practice in New York in 1980.

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