Circular 6/16: Iran Trading - increased limit of fall-back cover
OUTLINE
- The International Group has purchased €100 million of "fall-back" cover to respond to any reinsurance recovery shortfalls.
- "Fall-back" does not provide a long term solution to Members' needs.
- The Group continues to engage with the US administration.
TO THE MEMBERSIran Trading - increased limit of fall-back cover
Members are referred to our circulars dated
and
.
As previously notified, the International Group has bought "fall-back" cover, which is designed to respond to reinsurance recovery shortfalls that would result from the inability of US- domiciled reinsurers on the Group GXL and Hydra reinsurance programmes to make payments due to the continuing application of US primary sanctions, for the 2016/17 policy year.
The Group has now been able to obtain a higher limit of cover (€100million) compared to that which was available initially (€70million) and further secured underwriters' agreement to a second full reinstatement of cover. All other features of the cover remain unchanged.
The Group remains of the view that because of the limitations of fall-back cover, whilst mitigated to an extent by the increase in limit and the additional reinstatement, it does not provide a long term solution to Members' needs. The Group therefore continues to engage with the US administration and a further report will be made in due course.
All clubs in the International Group have issued a similar circular.
Yours faithfully,
THE MANAGERS
For more information:
Members with any questions regarding this circular are requested to contact Nigel Carden (
)
