Three core agreements underpin the governance and functioning of the Group, namely the Group Constitution, the International Group Agreement and the Pooling Agreement.
The Group operates pursuant to a written constitution, which defines the three core objectives of the Group, namely;
The Constitution also provides for the appointment of Group officers and matters relating to resignation and termination of membership.
The IGA, which was last updated in 2013, governs the way in which clubs compete as between themselves. In particular, it;
The claims-sharing mechanism provided by the Pooling Agreement, and the very high limits of cover provided by the Group Clubs pursuant to the Group pooling and reinsurance arrangements, are underpinned by the IGA, which is an essential element in ensuring mutual cooperation between the Group Clubs, and the effectiveness of the pooling arrangements.
Although the Group clubs compete with each other for business, it is to the benefit of all shipowners insured by Group clubs for the clubs to pool their larger risks. Pooling is regulated by the annually renewed Pooling Agreement which defines the risks that can be pooled, those risks which are excluded from cover, and how covered losses are to be shared between the participating clubs. The Pool provides a mechanism for sharing all claims in excess of US$ 10 million up to, currently, approximately US$ 7.75 billion.
The Pooling Agreement addresses amongst other matters:
Because Group clubs share claims through the pooling system, they have a common interest in loss prevention and control, and in the maintenance of quality standards throughout the membership.