Skuld outlines the reinsurance program for the insurance year 2024/25



Skuld outlines the reinsurance program for the insurance year 2024/25 | Insurance Business America















Major general loss excess restored with unchanged free and unlimited coverage

Security

According to
Kenneth Araullo

Marine insurance company Skuld published details regarding him reinsurance program for the 2024/25 policy year, outlining significant features and changes.

First, club retention will remain at $10 million and the pool will continue at $100 million. The international group’s captive, Hydra, is being used as part of its risk containment strategy. Master General Loss Excess has been reinstated with unchanged free and unlimited coverage for most risks, excluding Malicious Cyber, COVID-19 and Pandemic.

Dangerous cyber, COVID-19 and pandemic risks in particular now benefit from the expanded coverage. Skuld confirmed that there is free and unlimited coverage for claims up to $650 million in excess of $100 million, which includes the certified risks of almost all group clubs. For claims in excess of $750 million, up to $1.35 billion of annual aggregate cover is available for malicious cyber attacks and a separate $1.35 billion annual aggregate cover for COVID-19/pandemic risks.

The recent recovery process, influenced by a relatively mild environment for pool claims, has resulted in reduced rates for all vessel categories, which is a positive development for shipowners.

The structure of the arrangement for securing the international group is as follows:

  • USD 10 million club retention
  • Maintaining a $100 million fund
  • $2 billion General Excess coverage in excess of $100 million
  • $1 billion in spillover protection exceeding $2.1 billion

The Association’s coverage limits for 2024/25 are as follows:

  • Oil pollution: $1 billion
  • Passengers and crew combined: $3 billion
  • Passengers (sublimit): $2 billion

Oil pollution, spills, and war risk reinsurance

For oil pollution, the limit applies to the aggregate of the obligations of owners and charterers of bareboats. For passenger and crew claims, the total limit is $3 billion per event, per vessel, with a sub-limit of $2 billion for passenger claims.

Spillover protection includes provisions for claims in excess of $2.1 billion, with members required to contribute to spillover calls of up to 2.5% of the asset limitation fund for each vessel that comes on board. Coverage applies to claims up to $1 billion that exceed $2.1 billion.

The US oil pollution surcharge for 2024/25 will remain at zero.

War risks P&I coverage with a limit of $500 million per vessel per event will continue. The minimum connection point remains at $500 million, excluding commitments under TOPIA 2006. Due to the ongoing conflict between Russia and Ukraine, territorial exclusion language has been introduced for vessels in these waters, with sub-limit coverage of $80 million available.

The Terrorism Insurance Program Reauthorization Act of 2015 extended TRIA/TRIP through December 31, 2027. Insurance for acts of terrorism as defined in the Act will be included on the same terms with the same limit, with a premium of $0.0025 per GT considered for attributable to these risks and included in the total premium.

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