The International Group today announced that it had concluded terms for 2016 in respect of the excess of loss reinsurance.
The Club will formally publish its customary circulars following the Board meeting on 1st February. The revised rates for the 2016 policy year are set out below.
International Group General Excess of Loss Reinsurance Contract Renewal 2016 policy year
The International Group RI rates (per GT) including Hydra premium, Collective Overspill Cover and Excess War Risk P & I for the year commencing 20 February 2016 are as follows:-
Tonnage Category
2016 rate per gt
% change from 2015
DIRTY TANKERS
$0.6567
% - 10.25
CLEAN TANKERS
$0.2816
% - 10.26
DRY CARGO VESSELS
$0.4537
% - 7.18
PASSENGER VESSELS
$3.5073
% - 7.19
Further explanation is available on the International Group website here.
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.
27 October 2015, London - The UK P&I Club ('the Club'), one of the leading providers of protection and indemnity insurance, agreed at its Board meeting on 26th October 2015 that the General Increase for the 2016 renewal will be 2.5%.
