A recent High Court case clarified that an insurer has an obligation to assess risk and that this obligation sits alongside the duty of the policyholder to disclose material facts. The case confirmed that the insurer must undertake prudent investigations and make reasonable enquiries at the pre-contract stage and is not merely a passive recipient of information. The Court's finding was that the duty of utmost good faith is a mutual one, and that insurers cannot rely on the policyholder's duty to disclose if the insurer itself has failed to make a prudent assessment of the risk.