The International Group of P&I Clubs (IG) has finalized its pool and group excess loss (GXL) reinsurance structure for the 2026/27 policy year, introducing two key changes as the environment shifts to higher levels of pool claims activity.
“Following a relatively benign joint claims environment in the 2022/23 and 2023/24 policy years, joint claims activity in the 2024/25 and 2025/26 policy years has returned to higher levels and is more consistent with the 2019-2021 period,” the IG explained.
With this in mind, as part of GXL, IG arranged four private placements representing 27.5% of Tier 1 of the program ($650 million x $100 million), reducing Tier 1 market share from 75% to 72.5%.
IG has also expanded GXL Tier 3 coverage from $600 million in excess of $1.5 billion to $850 million in excess of $1.5 billion, thereby expanding the coverage offered by the club to its owner members.
According to IG, this means its $1 billion in collective spillover cover now exceeds $2.35 billion, compared with $2.1 billion in 2025/26.
The diagram below from the IG illustrates the hierarchy and participation structure of the GXL program in 2026/27.
“GXL enables IG Club to offer a unique high level of free and unrestricted cover for most of the risks it insures. IG is therefore very grateful for the continued support of its leader, AXA XL, and many other long-term reinsurance partners in securing renewals,” IG said.
Mike Hall, Chairman of the IG Reinsurance Committee, commented: “International Group’s successful completion of the 2026 reinsurance renewal highlights the strength and resilience of the mutual aid system.
“Being able to provide the high level of coverage our shipowner members require on competitive terms reflects the effectiveness of collective bargaining and long-term relationships with our reinsurance partners.
“I am also pleased to announce that Bjornar Andresen will succeed me as Chairman of the Renewal Committee in 2027/28. Bjornar is Gard’s Chief Underwriting Officer and is already well known in the reinsurance market and has been a member of the Reinsurance Committee since 2018.
“Having worked closely with Bjornar on the current renewal discussions, I have no doubt that I will be leaving the committee and the inspector general in very good hands.”