ABSTRACT
4.1 A key tenet in the underwriting of marine risks is prudence, with a significant emphasis on the wisdom of spreading insured risk among underwriters within and, if necessary, across different insurance markets 1 . The prudent underwriter is not prepared to place all his eggs in one basket and underwrite a risk which, if it materialises, may mortally wound his business. Consequently, an assured seeking cover for a substantial risk may contract with multiple underwriters, each assuming a distinct proportion of the risk, customarily expressed as a percentage or monetary sum. The cover is thereby provided by a scheme of co-insurance, established by multiple individual contracts, each underwriting a part of the risk, and collectively providing full cover 2 . It is also highly probable that each primary co-insurer will further secure its position by acquiring reinsurance, which again may be provided by multiple co-reinsurers 3 .
