Mike Hall, Chairman of the International Group of P&I Clubs (IG) Reinsurance Committee, has announced a “positive renewal” for shipowners for February 2024, with all vessel types seeing rate reductions.
With IG’s Pooling and Group Excess of Loss Reinsurance contract (GXL) structure for 2024/25 having now been finalised, the Group observed a “relatively benign” Pool claims environment for 2022/23, adding that 2023/24 has also started well.
“Whilst there has been some deterioration for prior years’ claims within the Pool, the overall impact on the Group’s reinsurance partners has not been significant and the hurricane season was less impactful than in the previous year with other non-marine losses,” IG explained.
The Group noted that it “remains grateful” for the ongoing support of its leader, AXA XL, and also to its many other longstanding reinsurance partners.
IG’s $3.1bn reinsurance tower for 2024/25 maintains three private placements amounting to 25% of Layer 1 of the programme ($650m xs $100m).
For Layers 2 and 3 the COVID-19/Pandemic risk aggregated cover has been split from the Malicious Cyber aggregated cover.
IG said that for both these risks there continues to be free and unlimited cover for all claims up to $650m xs $100m, but now with two towers of separate aggregated cover for claims above $750m up to $$2.1bn.
There continues to be the $1bn Collective Overspill cover excess of the GXL.
Hall continued, “The IG has managed its claims profile extremely efficiently over the last few years and the efforts of Clubs and shipowners in their loss prevention programmes have helped to contribute to a more benign claims environment, despite two major conflicts and other geopolitical challenges.”
He concluded, “The excellent communications between the IG and the GXL leader, AXA XL, as well as with the IG’s many longstanding reinsurance partners, has reinforced both the importance and unique nature of the IG’s coverage requirements in support of the global shipping community, which helps to facilitate global maritime trade.
“I am therefore grateful to them and to the IG’s brokers for their continued support in finalising this year’s reinsurance programme.”
