The judgment in CGU INSURANCE LIMITED V BLAKELEY & ORS [2016] HCA 2 (11 February 2016), at least in the limited area of claims available to liquidators, broadened the circumstances in which a liquidator may seek to challenge determinations made by insurers to deny liability under policies of insurance to which the company in liquidation is not a party and where the policy may inure for the benefit or potential benefit of creditors. It provides yet a further circumstance in which an insurer may have direct accountability in respect of insolvent insureds to third parties. This decision has obvious important ramifications for the Australian insurance industry.
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