A reinsurer’s right to inspect
The very nature of reinsurance means that, more often than not, reinsurers are not privy to details about how the reinsured manages claims and losses. The right to inspect can provide a reinsurer with the means of ascertaining whether the reinsured is managing claims and losses in accordance with the terms of the reinsurance contract. So when does a reinsurer have the right to inspect?
Important considerations include whether
- the reinsured has a contractual right to inspect;
- there are any limitations on the reinsured’s right to inspect;
- there are any steps the reinsured should take to protect its right to inspect.
Significant cases, legislation or articles referred to
- Odyssey (Bermuda) Ltd v Reinsurance Australia Corporation Ltd  NSWSC 266
- Corporations Act 2001 (Cth)
- Insurance Contracts Act