Reduction in the IG Excess Reinsurance Programme for 2015
Negotiations have been finalised for the International Group General Excess of Loss reinsurance contract and the favourable Pool claims experience for 2012, 2013 and 2014 policy years, have enabled the group to achieve rate reductions:
- minus 8.11% for clean and dirty tankers
- minus 6.05% for dry cargo vessels
- and no increase for passenger vessels and chartered entries.
The Clubs apart from Shipowners PI Club and West of England, quote P&I renewal premiums/calls inclusive of the existing reinsurance costs, and at 20 February will pass on to their Members any change to the reinsurance programme. This year, tankers and cargo vessels Owners should therefore see a reduction in their 2015 P&I quoted premium/calls, whilst no additional cost will be charged to Charterers and passenger vessels Owners.
Shipowners P&I Club have for several years absorbed any increase to the Reinsurance costs, and do not apply any adjustments for reinsurance to their premium quotations.
West of England do not include any GXL reinsurance costs, which will be charged separately at the 2015 IG GXL rates as follows:
- Dirty and clean tankers: USD0.7317/GT
- Dry cargo vessels: USD0.4888/GT
- Passenger vessels: USD3.7791/GT
- Chartered tankers: USD0.2522/GT
- Chartered dry cargo vessels: USD0.1225/GT
The individual Club’s retention remains at USD9 million, and the GXL contract excess point at USD80 million.
Hydra reinsurance of the Group pool remains USD50 million in excess of USD30 million, although its co-reinsurance share is increased.
Contact us if you would like us to review your P&I programme for 2015 on [email protected]