Marine insurer Skuld has released details regarding its reinsurance program for the policy year 2024/25, outlining significant features and changes.
Firstly, the club retention will remain at US$10 million, and the pool will continue at US$100 million. The international group’s captive, Hydra, is being used as part of its risk retention strategy. The main general excess of loss has been renewed with unchanged free and unlimited coverage for most risks, excluding malicious cyber, COVID-19, and pandemic.
Notably, malicious cyber, COVID-19, and pandemic risks now benefit from expanded coverage. Skuld confirmed that there is free and unlimited cover for claims up to US$650 million excess of US$100 million, which encompasses almost all group clubs’ certificated risks. For claims exceeding US$750 million, there is up to US$1.35 billion of annual aggregated cover for malicious cyber and a separate annual aggregated cover of US$1.35 billion for COVID-19/pandemic risks.
The recent renewal process, influenced by a relatively mild pool claims environment, has resulted in rate reductions for all vessel categories, a positive development for shipowners.
The structure of the international group’s reinsurance arrangements is as follows:
The limits on the Association’s Cover for 2024/25 are as follows:
For oil pollution, the limit applies to the aggregate of owners’ and bareboat charterers’ liabilities. In passenger and crew claims, the overall limit is US$3 billion for any one event, any one vessel, with a sub-limit of US$2 billion for passenger claims.
Overspill protection includes a provision for claims in excess of US$2.1 billion, with members liable to contribute overspill calls up to a limit of 2.5% of the property limitation fund for each entered vessel. The protection is placed for claims up to US$1 billion in excess of US$2.1 billion.
The US oil pollution surcharge for 2024/25 will remain at nil.
War risks P&I cover, with a limit of US$500 million each vessel per event, will continue. The minimum attachment point remains at US$500 million, excluding liabilities under TOPIA 2006. Due to the ongoing conflict between Russia and Ukraine, territorial exclusion language has been implemented for vessels in these waters, with a sub-limited cover of US$80 million available.
The Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended TRIA/TRIP until December 31, 2027. Coverage for acts of terrorism as defined in the Act will be included on the same terms with the same limit, with a premium of US$0.0025 per GT deemed attributable to these risks and included within the overall premium.
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