The International Group of P&I Clubs (IG) has finalised its Pooling and Group Excess of Loss (GXL) reinsurance programme for the 2026/27 policy year, confirming continuity in structure while introducing targeted enhancements aimed at strengthening long-term stability and maintaining broad cover for shipowners.
The renewal comes against a shifting claims backdrop. While the 2022/23 and 2023/24 policy years experienced relatively benign Pool claims activity, the 2024/25 and 2025/26 years have seen a return to higher levels of pool claims, broadly in line with patterns recorded during the 2019–2021 period. Despite this increase, the IG has successfully secured competitive reinsurance terms, underscoring the resilience of its mutual system.
The GXL programme remains a cornerstone of the International Group’s ability to offer free and effectively unlimited cover for most insured risks, a feature that continues to distinguish IG Clubs within the global marine liability market. The Group acknowledged the continued support of its lead reinsurer AXA XL, alongside a broad panel of longstanding reinsurance partners.
Key Changes for 2026/27
Two notable structural changes have been introduced for the coming policy year.
First, the IG has arranged four private placements covering 27.5% of Layer 1 of the GXL programme, equivalent to USD 650 million excess of USD 100 million. This reduces the open market share of Layer 1 from 75% to 72.5%, enhancing pricing stability and diversification.
Second, the IG has expanded Layer 3 of the GXL, increasing cover from USD 600 million excess of USD 1.5 billion to USD 850 million excess of USD 1.5 billion. As a result, the Collective Overspill cover of USD 1 billion now attaches excess of USD 2.35 billion, compared with USD 2.1 billion in the 2025/26 policy year.
Programme Structure and Risk Coverage
The core GXL placement for 2026/27 remains structured across three layers totaling USD 2.25 billion excess of USD 100 million, with the Individual Club retention unchanged at USD 10 million per claim. Claims between USD 10 million and USD 100 million continue to be pooled among the Group Clubs.
The layer structure is as follows:
- Layer 1: USD 650 million excess of USD 100 million
- Layer 2: USD 750 million excess of USD 750 million
- Layer 3: USD 850 million excess of USD 1.5 billion
A total of 72.5% of Layer 1 and 100% of Layers 2 and 3 is placed in the open market on a free and unlimited basis, except for malicious cyber and pandemic-related risks, including COVID-19.
For these excluded risks, the IG continues to provide free and unlimited cover up to USD 650 million excess of USD 100 million, covering the vast majority of certificated risks. Above USD 750 million, the programme provides two separate aggregated towers of USD 1.6 billion each, one for malicious cyber risks and one for pandemic risks, up to USD 2.35 billion. Any shortfall beyond these limits continues to be pooled within the Group, ensuring no reduction in cover for shipowners.
The IG’s Bermudan-based captive reinsurer, Hydra, continues to play a central role by retaining an Annual Aggregate Deductible (AAD) within Layer 1. For 2026/27, the AAD has reduced from USD 107.1 million to USD 103.6 million, reflecting the reduced market share in Layer 1.
War, MLC and Passenger Cover
The IG confirmed that Maritime Labour Convention (MLC) cover will be renewed on competitive terms, with premiums included within overall reinsurance costs charged to shipowners.
Excess War P&I cover will also be renewed for a further 12 months. However, due to the ongoing conflict between Russia and Ukraine, reinsurers have maintained territorial exclusion clauses for vessels trading in affected waters. To address this, the IG has increased its purchase of aggregated sub-limited cover for excluded Russia, Ukraine and Belarus risks from USD 100 million to USD 125 million.
Despite the expansion of Layer 3 and the Collective Overspill limits, passenger and crew liability limits remain unchanged for the 2026/27 renewal.
Reinsurance Cost Allocation
Following its annual review, the IG’s Reinsurance Committee has decided to retain existing vessel categories while adjusting rates to better reflect historical claims performance against the GXL programme.
The approved 2026/27 rates per gross tonne are as follows:
- Persistent oil tankers: USD 0.5758 (-8.0%)
- Clean tankers: USD 0.4337 (no change)
- Dry cargo vessels: USD 0.5751 (-5.0%)
- Freight container carriers (FCCs): USD 1.0237 (+15.0%)
- Passenger vessels: USD 3.1472 (-8.5%)
With the exception of FCCs, most vessel categories will benefit from reduced reinsurance rates, reflecting favourable long-term claims experience.
Leadership Transition
Commenting on the renewal, Mike Hall, Chairman of the International Group’s Reinsurance Committee, said the successful completion of the 2026/27 programme highlights the strength of the mutual system and the value of collective negotiation with reinsurers.
Hall also confirmed that Bjornar Andresen, Chief Underwriting Officer at Gard, will succeed him as Committee Chair for the 2027/28 renewal. Andresen has served on the Reinsurance Committee since 2018 and is well known within global reinsurance markets.
The finalised programme is effective from 17 December 2025, ensuring continuity of cover and pricing stability for IG shipowner members entering the 2026/27 policy year.
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