23rd January 2023
The International Group has announced the reinsurance tariff rates for all Owners’ entries to take effect at renewal of 20th February 2023.Tonnage category / 2022 rate US$/GT • Adj • Change US$/GT • 2023 rate US$/GT
Persistent Oil tankers / 0.6469 • 0.0194 • +3.00% • 0.6663
Clean Tankers / 0.3666 • 0.0385 • +10.50% • 0.4051
Dry / 0.5639 • 0.0352 • +6.24% • 0.5991
FCC* / 0.6586 • 0.0691 • +10.49% • 0.7277
Passenger / 3.8677 • 0 • +0.00% • 3.8677
FCCs* = Fully Cellular Container Ships
Notwithstanding a benign Pool Claims year during the 2022/23 Policy Year, there has been deterioration in prior year, mainly due to hurricane Ian and the Russia / Ukraine war. There is also wider market deterioration on other classes of reinsurance business which had significant impact on the International Group’s reinsurance partners. Nevertheless the IG has been able to renew its reinsurance programme with a relatively low increase in rates for the members of the IG. The Reinsurance Committee has analyzed the vessel categories, maintaining the same five as last year but adjusting the relative rates according to the historical claims performance.
The Individual Club Retention (ICR) for the policy year 2023/24 will remain unchanged at USD 10 million, as well as the Pool structure in excess of this, up to the attachment point for the GXL at USD 100 million. The GXL programme remains substantially unaltered: the main GXL placement (USD 2Bn in excess of USD 100m) has been returned to 3 layers, with the Collective Overspill (USD 1Bn excess of USD 2.1Bn) renewed with premium included within the overall rate per GT.
The excess War P&I cover will be renewed at the same extent of 2022 policy year. However due to the ongoing war between Russia and Ukraine, the IG’s excess war reinsurers require a territorial exclusion clause for vessels trading in these waters. The IG is negotiating availability of sub-limited cover for affected vessels and we will return on the matter with details of the cover in due course.
For the standard Excess War Risks P&I cover the limit remains USD 500 million. The cover will only respond to claims in excess of the proper value of the entered ship, deemed not to exceed USD 500 million, or whatever sum is recoverable from any other war risks policy of insurance, whichever is the greater.
For Malicious Cyber, Covid and Pandemic risks there is free and unlimited cover for claims up to USD 650 million excess of USD 100 million, covering almost all Clubs’ certificated risks. Excess of USD 750 million there is up to USD 1.35 billion of annual aggregated cover in respect of these three risks. Excess of that the Group has decided to pool between Group Clubs the unreinsured risks, resulting in no change to Members’ cover.
The diagram below illustrates the layers and participation structure of the GXL programme for 2022/23. Download the complete pdf to see the diagram
Should you have any queries regarding the above please do not hesitate to get in touch with your usual P.L. Ferrari contact or get in touch via our website at www.plferrari.com
This Newsletter, and our information archive, can also be accessed at www.plferrari.com
P.L. FERRARI & CO S.r.l.
P.L.Ferrari – A Member of the Lockton Group of Companies This newsletter is intended solely as an overview of the marine market and does not constitute any form of advice. It is based on sources believed to be accurate at the time of printing and we cannot be held liable for the omission of any information within the newsletter.