Individual club retention increases to $9 million at 20 February 2013
Following consideration within the International Group Reinsurance subcommittee, the Group has agreed that the individual club retention which was last increased from US$ 7 million to US$ 8 million with effect from the 2010 policy year will be increased to US$ 9 million with effect from 20 February 2013.
The UK Club welcomes the increased retention level to $9 million. It has long supported a significant level of risk retention by individual clubs.
An explanation of the Pooling system and reinsurance provided via the International Group can be found in the 'About the Club' section of this website
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.
Hold preparation is probably the most vital part of bulk carrier operations; if it is not undertaken properly, it can result in substantial cargo claims, delays, additional cleaning, survey costs and expensive off-hire disputes.
