2018 Reinsurance Rates Announced
The International Group today announced that it had concluded terms for 2018 in respect of the excess of loss reinsurance. Notwithstanding the uncertainty in the insurance and reinsurance markets following the 2017 windstorm, earthquake and wildfire events, the Group, with the support of its programme leader and panel of reinsurers, has once again been able to advance the traditional renewal timetable by approximately one month with the objective of assisting both shipowners and clubs in their negotiations for the 2018/19 P&I renewals.Renewal overview
The loss experience of the reinsurance programme on the 2012/13 to 2017/18 (year to date) policy years remains acceptable to reinsurers, notwithstanding some claims development over the year. This factor, combined with continuing surplus market capacity, the continuing positive financial development of the Group captive, Hydra and the effective use of multi-year private placements has enabled the Group to achieve satisfactory reinsurance renewal terms which will result in a further year of reinsurance rate reductions across all vessel categories
The revised rates for the 2018 policy year are set out below.
Further explanation is available on the International Group websitehere.International Group General Excess of Loss Reinsurance Contract Renewal 2018 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 2018 are as follows:-
|Dry Cargo Vessels||$0.4038||-1.85|
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2020 Reinsurance Rates Announced
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.
Members are reminded of Circular 6/16: Iran Trading - increased limit of fall-back cover, which informed Members that The International Group had purchased €100 million of "fall-back" cover to respond to any reinsurance recovery shortfalls. The International Group announced last week that the "fall-back" reinsurance programme will not need to be renewed past 20th February 2017. The full text of the notice is below, and is also available on the International Group website