Protecting the Club
The Club has purchased specific reinsurances to protect against claims volatility.

These reinsurances responded to the escalation in the number of large claims in the 2013 policy year.

In addition, the strong capital position of the Club enables it to absorb more expensive policy years without disturbing its ability to achieve its long-term strategic objectives.As the Club looks to achieve its strategic objective of greater scale, the volatility of large claims becomes less significant. This greater predictability enables more accurate forecasting and more efficient reinsurance purchase.

As a result of the Club’s excellent Pool claims record, its percentage contribution to Pool claims is well below the Club’s market share of group tonnage. In an average year this improves the Club’s claims cost by $12 million and reduces the combined ratio by 4%.

Nine claims were notified to the Pool during the first twelve months of the 2015 policy year. None of these claims were notified by the UK Club. Therefore the Club’s credit balance on the Pool of nearly $140 million, which is not included within the free reserve has been protected for another year.

International Group reinsurance claims
Though not as benign as the previous three years, the 2015 policy year was the fourth consecutive year of relatively favourable performance for claims reported to the International Group’s reinsurance contract. Based on current estimates, only one claim exceeds the Pool retention of $80 million. However, it is possible that this one claim could be of greater significance than any since the Costa Concordia in the 2011 Policy Year.

After a number of years of development, the two large claims that shaped the expensive 2011 policy year have remained stable during 2015.

Structure of the Pool and International Group reinsurance programme for 2016 
For the 2016 policy year, the individual Club retention has been increased from  $9 million to $10 million. Other than minor simplifications to the individual Club retention proportions above $45 million, there are few changes to the pool structure below the reinsurance attachment point of $80 million.

A third 5% 36-month Private Placement of $1 billion excess $100 million has been included within the structure. The three Private Placements open the contract to new markets and wider capacity. The Hydra share has been maintained.

The diagram below illustrates the structure of the Pool and Group general excess programme for 2016/2017.

Emergency Contacts

If you need to call our offices out of hours and at weekends, click After Office hours for a up to date list of the names of the Duty Executives and their mobile phone numbers. 

Ship Finder

This Ship Finder is updated on a daily basis. Members who need to advise the Club of updates to their recorded ships' details should advise their usual underwriting contact.