CIRCULAR REF: 2016/010
CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS
As previously notified, the International Group has bought “fall-back” cover, which is designed to respond to reinsurance recovery shortfalls that would result from the inability of US-domiciled reinsurers on the Group GXL and Hydra reinsurance programmes to make payments due to the continuing application of US primary sanctions, for the 2016/17 policy year.
The Group has now been able to obtain a higher limit of cover (€100 million) compared to that which was available initially (€70 million) and further secured underwriters’ agreement to a second full reinstatement of cover. All other features of the cover remain unchanged. The Group remains of the view that because of the limitations of fall-back cover, whilst mitigated to an extent by the increase in limit and the additional reinstatement, it does not provide a long term solution to Members’ needs. The Group therefore continues to engage with the US administration and a further report will be made in due course.
All clubs in the International Group have issued a similar Circular.
DEPUTY GLOBAL DIRECTOR (CLAIMS)
The North of England P&I Association Limited