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.

On 2 March 2016 the United Nations Security Council ("UNSC") adopted Resolution 2270 (2016) ("the Resolution") in response to the nuclear test conducted by the Democratic missile by the DPRK on 7 February.

This circular provides further advice to Members regarding insurance cover arrangements following the partial lifting of Iran sanctions under the JCPOA.

The continuing application of US primary sanctions to US domiciled reinsurers participating in the Group's reinsurance arrangements means that Members remain exposed under Club sanctions' rules to the risk of partial reinsurance shortfall in respect of non-certified liabilities towards or incurred by Iranian interests. The Internatinal Group is working on a "fall-back" reinsurance protection to cover the default risk.