Please be advised that the International Group (IG) Reinsurance Programme for 2022/23 policy year has now been concluded.

The general structure of the IG Reinsurance Programme for 2022/23 policy year is as follows (Four categories shown remain unchanged):

• Club retention: US$10 million
• Group retention: US$100 million
• General Excess Loss (GXL) 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)

The following special limits on the Club covers for 2022/23 policy year are applied to the Owners’ entry (Three categories shown remain unchanged):

• Oil Pollution: US$1 billion
• Passenger: US$2 billion
• Passenger and Crew combined: US$3 billion

Since the inception of the two-year GXL programme placed in 2020, reinsurers have introduced market-wide coverage restrictions in respect of Malicious Cyber, Covid-19 and other new Pandemics. Nonetheless, as a result of negotiation, the IG have secured a significant level of cover, as follows:

• Layer 1 (US$450 million in excess of US$100 million): Free and unlimited cover
• Layer 2-4 (US$1.55 billion in excess of US$550 million): Each layer has an annual aggregate limit in place, totalling US$2.15 billion for abovementioned three risks.

The IG agreed to pool losses that exceed the annual aggregate limit and therefore could not be recoverable from reinsurers. Accordingly, there is no change to Member cover.

Please see the attached diagramme for further details of the programme.

The IG concluded that there should be no change in the number of categories but that there should be some adjustments to the relative rate changes having regard to historical claims performance.

The IG Reinsurance rates per GT for 2022/23 policy year, including the excess war risks cover and MLC reinsurance cover, are as follows:

The IG’s decision to renew the majority of its programme for two years in 2020 provided our Members with the benefits of price stability and continuity of cover for those two years. However, during the intervening period a combination of hardening market conditions, a global pandemic, a number of coverage issues, plus a worsening claims record, have all resulted in the 2022 renewal being particularly challenging to negotiate.

The IG’s Bermudan based reinsurance captive Hydra continues to support the Group through its risk retention within the lower Layers of the Group’s reinsurance structure. The IG’s strategy of placing a share of the reinsurance programme on a stand-alone basis through the use of private placements has also continued to give shipowners greater stability in a year when market sentiment has been volatile as a result of the impact of the COVID-19 pandemic, increased severity of pool claims and market coverage issues.

Whilst rates for shipowners have increased by an average of 33% year-on-year, the new rates are similar to those rates per gt in 2014/15.

For more information, please see Press Releasepublished by the IG.