In connection with the Club’s board meeting on November 29th in London, the Board decided on a general increase of 15% in respect of P&I.

The Club’s Managing Director, Mr. Frans Malmros says: “Even though the Club’s solvency, in comparison with most other Club’s, is very good we are nevertheless required to increase premiums in order to meet future increases in liabilities and increased claims cost in general. Given the fact that the Club has one of the lowest calls in USD/GT it was not a difficult sell to ask for 15% general increase.”

Mr. Malmros adds: “We are of course affected by the increased cost of pool claims, but even more disturbing is the volatility in claims distribution. Some 55% of the Club’s aggregated claims cost is derived from a fairly small number of claims.

This fact coupled with a constant increase of liabilities, depreciation of the USD as well as the underlying inflation of claims cost, demands for a premium increase. Due to the volatile claims distribution it is an intellectual challenge to argue for increases, on the other hand never before has it been more obvious what mutual insurance is all about, and why owners need to support the only viable insurance solution available in the market.”

The general increase on P&I will be applied on premiums prior to any corrections in respect of individual records and exposure. 

In addition, the Board decided upon a general increase of 10% in respect of FD&D.

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Contacts:
Frans Malmros  The Swedish Club  Telephone: +46 31 638 400

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The Swedish Club
The Swedish Club was founded in 1872. It is a leading mutual marine insurance company, owned and controlled by its members. The Club writes Hull & Machinery, War Risks, Protection & Indemnity, Loss of Hire, Freight Demurrage & Defence and any additional insurances required by shipowners. The head office is located in Göteborg, Sweden, and branch offices are located in Piraeus, Hong Kong and Tokyo.

As at November 1st the Club covered 1,961 vessels for Hull & Machinery, 961 vessels for P&I and 540 vessels for FD&D.

More information about the Club is available at: www.swedishclub.com