Answer
Group Pooling & Reinsurance Layers (The Structural "2nd Layer")
In the International Group (IG) pooling mechanism, claims are paid in layered structures:
1st Layer (Individual Club Retention): The primary P&I Club pays claims up to its individual retention limit (currently $10 million).
2nd Layer (The IG Pool): Claims between $10 million and $100 million are shared collectively among all 12 member clubs of the International Group under the Pooling Agreement.
3rd Layer (General Excess Loss Reinsurance): Claims above $100 million up to $2.35 billion ( Financial year 26-27) are reinsured in the commercial market. ( For financial year 25-26, it was 2.2 Billion, As per Nortstandard P&I club)
4th layer (Collective Overspill Protection (The $1 Billion Layer)): Claims from $2.35 billion up to $3.35 billion.