Group Reinsurance Rates 2024/25

The Individual Club’s retention on any claim remains at US$ 10 m and excess of this, claims are pooled between Group Clubs for US$ 90 m excess US$ 10 m;

The entire Group reinsurance placement, excess of US$ 100 million can be summarised as follows:

Layer 1 – US$ 650 m excess US$ 100 m

Layer 2 – US$ 750 m excess US$ 750 m

Layer 3 – US$ 600 m excess US$ 1.5 bn;

75% of Layer 1 and 100% of Layers 2 and 3 are placed with the open market on a free and unlimited basis, except for malicious cyber, COVID-19 and Pandemic liabilities. For those risks, cover remains on a free and unlimited cover within layer 1, which covers almost all Clubs’ certificated risks. For 2024/25, Excess of USD 750m there is up to US$1.35bn of annual aggregated cover in respect of Malicious Cyber cover and separate annual aggregated cover of USD1.35bn in respect of COVID-19/Pandemic risks. Excess of that aggregated cover, the IG continues to pool any reinsurance shortfall, resulting in no change to shipowners’ cover.

Excess War cover

The excess War P&I cover will be renewed for 2024/25 for a period of 12 months. Again, this will be included in the total rates charged to shipowners.

However, due to the ongoing active war between Russia and Ukraine, the IG’s Excess War reinsurers have maintained their requirement for Territorial Exclusion language (consistent with exclusionary language already applied by reinsurers for Primary War P&I coverage) for vessels trading in these waters. As such the Group has purchased aggregated sub-limited cover of USD 80m from the reinsurance markets to cover the Russia/Ukraine/Belarus excluded risks.