19 December 2024
IG Reinsurance Rates 2025-26
Discover key updates to the International Group's 2025-26 reinsurance programme, rate changes, and the impact of the MV Dali casualty.
Yesterday, the International Group released details of its reinsurance programme for the forthcoming 2025-26 policy year which, in summary, is essentially unchanged from the previous year as regards individual club retentions, pool limits and reinsurance layering and limits. The only minor change is in respect of the excess war P&I cover, which features a territorial exclusion relating to Russia/Ukraine/Belarus. The Group have purchased a USD100 million aggregate sublimated cover in respect of this exclusion for 2025-26 as distinct to USD80 million in the current year.
The following graphic sets out the overall structure for the cover in excess of the pool:
The International Group has resisted the temptation to increase the overall limit of reinsurance in response to the expected high cost of the MV Dali casualty, although it’s conceivable that there was insufficient risk appetite in the market to permit this.
No new vessel category was introduced for this year leaving the cost allocations across the 5 categories of vessel as follows:
Charterers rates are up by between 3% and 4% on the prior year.
The following illustration shows the evolution of these rates over the past 40 years:
It should come as no surprise to readers to see that the container vessel category (FCC) has suffered the biggest increase in cost allocation for next year. This reflects upon the fact that the MV Dali, a container vessel, was involved in potentially one of the largest claims for reinsurers in the past 5 years. It also reflects the continued poor loss record of this class of vessel since it was separated from other dry vessels – and indeed the poor loss record of container vessels during the years immediately prior to separation.
The above illustration excludes passenger vessel rate changes in the interests of improved presentation, please refer to earlier table to see trending in these rates.
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