The Insurance Poem

In 1969 entered into force a law
That must be obeyed for sure
Providing for employers' liability 
It is not optional, but is compulsory  

In the case of Tracy Kennedy v Cordia, the Supreme Court
Unanimously held that the defendant committed the tort
Of negligence by not doing a risk assessment 
Causing the claimant to slip and fall as she went
Up an icy slope to treat an elderly patient. 

The Insurance Act 2015 
Explains exactly what we mean 
By the duty to make a fair presentation of risk 
Replacing the Marine Insurance Act 1906
If the insured breaches this duty deliberately or recklessly
The insurer is entitled to avoid the policy. 

A cornerstone of insurance law of every nation
Is the insurer's right of subrogation
Whereby after the insurer has paid the insured’s claim 
It can exercise the insured's right of recovery in the latter’s name 
Against any third parties responsible for 
The loss suffered by the insured, no less and no more
That is what subrogation is for. 

But Elisabeth Frasca Judd v Golovina is a case you should know 
Because of the important principle it shows
When insuring the property for the benefit of herself and the lessee
The High Court held regarding the tenant’s liability
The lessor's insurer may not be able to bring a subrogated claim 
On behalf of and in the Lessor's name
Against the lessee for breach of contract or negligence
For property damage or loss of rent
Because it clearly makes no sense
If the insurer fails to assemble all relevant evidence.

Dutch underwriters want to limit the award of smartengeld*
But in a recent judgment, an Irish court held 
That there must be a level of proportionality 
In general damages for cases of personal injury.
Dutch victims demand compensation for immateriële schade** 
But in compared to economic loss, calculating it is much harder.

Do you want to know about Solvency II?
It’s an insurance regulatory regime that is rather new
Based on Directive 2009/138 EC
If we wish to write with more clarity.
The regime has three pillars which are the heart of the law
Now we must see what these pillars are for.  

Pillar 1 imposes two requirements firms have to fulfil
Regarding both the minimum and solvency capital.
With the solvency capital requirement, firms must bear in mind
All life and non-life underwriting risks which they may find. 

Pillar II covers higher standards of risk management and governance.
Which you have to admit makes a lot of sense.
Firms must submit an ORSA to the regulatory authority
Which in Holland is the Central Bank or the DNB 
ORSA is a strange acronym, and it stands for 
Own risk and solvency assessment now enshrined in EU Law. 

Last but not least is Pillar Three
Which aims to ensure more transparency.
Insurers must submit reports to the supervisory authority 
In order that the authority can see
Detailed information about the insurers’ solvency.
However, Pillar Three - Solvency Two
Sounds like a football score in my view. 

* Dutch for pain and suffering

** Dutch for non-pecuniary damage