The International Group reinsurance sub-committee announced today that it had concluded terms for 2012 in respect of the excess of loss reinsurance and the oil pollution surcharge for US voyages.
The Club will formally publish its customary circulars in due course, however, Members may wish to be aware of the proposed rates for the 2012 policy year.
International Group General Excess of Loss Reinsurance Contract Renewal 2012 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 2012 are as follows:-
General Excess of Loss Reinsurance Rates 2012
Tonnage Category2012 rate per gtchange from 2011
DIRTY TANKERS
$0.6515
- 7.43 %
CLEAN TANKERS
$0.2798
- 8.41 %
DRY CARGO VESSELS
$0.3561
- 3.99 %
PASSENGER VESSELS
$1.3992
- 5.33 %
For chartered tankers, reinsurance costs including $0.0037 per GT for excess war risks will be $0.1768, and for chartered dries $0.0861 (both rates unchanged from 2011).
U.S. Oil Pollution Surcharge 2012
For 2012, the rates have been reduced by 30% to provide the following voyage surcharges for the 2012 policy year:
2012 Oil Pollution surcharge on US voyages
Non SBTSBT
(A)
Tankers of more than 1000 gt
$0.0476
$0.0396 per ton per voyage
LOOP/Lightening
$0.0238
$0.0198 per ton per voyage
(B)
Tankers of 1000 gt or less
either
$48
$40 per voyage
or
$960
$800 per annum
(C)
Parcel tankers carrying less than 5,000 metric tons of persistent oil as cargo
$143
$119 per voyage
(D)
Parcel tankers carrying 5,000 – 9,999 metric tons of persistent oil as cargo
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.
