International Group Reinsurance Programme for 2018/19 Policy Year
We are pleased to announce that the International Group (IG) Reinsurance Programme for 2018/19 policy year has now been concluded.
1. General Structure
The general structure of the IG Reinsurance Programme for 2018/19 policy year is as follows (Four items shown remain unchanged) :
| ● | Club retention | : | US$10 million |
| ● | Group retention | : | US$100 million |
| ● | General Excess Loss Cover | : | US$2 billion (US$2 billion in excess of US$100 million) |
| ● | Collective Overspill Cover | : | US$1 billion (US$1 billion in excess of US$2.1 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 2018/19 policy year are applied to the Owners’ entry:
| Oil Pollution | : | US$1 billion |
| Passenger | : | US$2 billion |
| Passenger and Crew combined | : | US$3 billion |
3. The IG Reinsurance rates for 2018/19 policy year
The IG Reinsurance rates per GT for 2018/19, policy year including the excess war risks cover and MLC reinsurance cover, are as follows;
|
Category |
2018 PY (US$/GT) |
% change from 2017 PY |
|
Dry Cargo |
0.4038 |
- 1.85% |
|
Dirty Tanker |
0.5845 |
- 1.85% |
|
Other Tanker |
0.2626 |
- 1.83% |
|
Passenger |
3.2707 |
- 1.84% |
4. 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.