International Group Reinsurance Programme for 2015/16 Policy Year
We are pleased to announce that the International Group (IG) Reinsurance Programme for 2015/16 policy year has now been concluded.
1. General Structure
The general structure of the IG Reinsurance Programme for 2015/16 policy year is as follows;
|
: USD9 million |
|
: USD80 million (USD 71 million in excess of USD9 million) |
|
: USD2 billion (USD 2 billion in excess of USD80 million) |
|
: USD1 billion (USD 1 billion in excess of USD2.8 billion) |
Please see the attached diagram for further details of the programme.
2. Limits on the Cover
The following special limits on the Club cover for 2015/16 policy year are applied to the Owners’ entry.
|
:USD1 billion |
|
:USD3 billion |
|
:USD2 billion |
3. The IG Reinsurance rates for 2015/16 policy year
The IG Reinsurance rates per GT for 2015/16 policy year including the excess war risks cover are as follows;
|
Category |
2015 PY |
% change from 2014 PY |
|
Dry Cargo |
￠48.88 |
▲6.05% |
|
Dirty Tanker |
￠73.17 |
▲8.11% |
|
Other Tanker |
￠31.38 |
▲8.11% |
|
Passenger |
￠377.91 |
±0.00 % |
4. Background on the changes in rates
Further deterioration during 2014 policy year of the loss amounts for two large claims (“Costa Concordia” and “Rena”) which occurred in the 2011/12 policy year has continued to impact on the IG Reinsurance programme. Fortunately, however, the 2014/15 policy year has so far not produced any claims which might impact on the programme. This, combined with increased market capacity and changes to the programme structure (increasing the Hydra co-insurance share in the 1st layer and further expansion of multi-year fixed placements), has resulted in a rate reduction for tankers and dry cargo vessels, and no increase for passenger vessels.