Group Reinsurance 2011 (Editorial 14th January 2011)
The new arrangements for the International Group excess of loss were announced this week.
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The individual rates charged for tankers visiting the United States have reduced by twelve and a half per cent compared to the 2010 policy year. These rates are published in the Addendum to the Club Rules in the "U.S. Oil Pollution Clause".
The Group excess reinsurance rates for the 2011 policy year have also reduced by between four and eight per cent. Differing individual rates are charged for key ship types to reflect the risk exposure they present to the Group Pool and reinsurance.
The Group has increased the upper limit of retained Pool claims from $50 million to $ 60 million. The excess of loss reinsurance programme covers the portion of claims exceeding that figure up to a total limit of $3,060 million.
An explanation of the International Group and Pool arrangements can be found on this website in the About the Club section under "International group of P&I Clubs".
The customary circular will be issued shortly by the Club explaining the arrangements for the 2011 policy year.
UK Club Correspondents, GAC, in Yemen, have provided the below Circular outlining the obligation concerning the arrival draft of the ship at Malla docks.
A major strength of the International Group remains its pooling arrangements and the General Excess of Loss and Collective Overspill Programme (GXL programme), which provides shipowners with un-paralleled levels of cover. All shipowners will be aware of the hardening reinsurance market and upward pressure on premiums. Despite this, the longevity and relative stability of the GXL programme has enabled the Group to achieve renewal for 2020/21 on expiring rates for shipowners. Of additional benefit, the US$2 billion excess of US$100 million placed in the commercial market has been confirmed for two years. This will help provide a degree of reinsurance pricing stability for the next two years whilst maintaining flexibility to fund claims within the Pool.
As part of our series of live webinars covering various Loss Prevention issues, the UK club provided a live webinar for Members, brokers and industry contacts in the Americas region.
