The same company X described in Question 1 buys employers’ liability insurance from the ground up. Through a fronting arrangement, the captive reinsures all losses of less than £100,000. All the rest is ceded to the insurance market.

Describe who pays how much in the case of these (accepted) claims:

a. A claim of £25,000 in Essex

b. A claim of £1,300,000 in Yorkshire

c. A claim of £2,200,000 in Gloucestershire, after which (and for reasons unrelated to the claim) the company goes into liquidation