Swedish Club has just published its terms for 2021’s Hull & Machinery Insurance. The comprehensive insurance cover will “suit the needs of individual members at rating and deductible levels reflecting exposure”.
Swedish Club said that the trend of a hardening hull market had continued in 2020. It noted that, following a period of negative results, a number of insurers had withdrawn from the market, which had led to significantly reduced capacity. This, in combination with strict action plans for many underwriters to restore positive underwriting results, had led to a general trend of premium correction in the market. The Club therefore expected a firmer market to remain for the coming policy year.
However, Swedish Club said that, even though the market was hardening, the Club’s premium levels were still not fully commensurate with exposure.
The Club said that it would therefore “continue to focus on aligning premium levels, on a case by case basis, across all classes in order to secure a balance in the marine portfolio”.
On the H&M claims side, the Club noted a slight drop in the overall frequency over the last few policy years, a trend that could also be verified through statistics from peers in the marine insurance market. The average claims cost during the same period was showing an increase. In addition, there was a high degree of volatility on the cost side for larger claims.
During the current policy year, a few large claims have had a negative impact on the Club’s result for Hull & Machinery, which meant that the forecast for the Marine portfolio 2020 was a small deficit.
The Club will offer all members renewal terms tailored to individual performance and exposure.
Swedish Club has also published the following Mandatory Club Clauses 2021 in downloadable pdfs:
American Institute Hull Clauses
To be used with ADS/DTV 1978 (1992)
Institute Time Clauses (Hulls (ITC))
To be used with ITC/83 and ITC/95
To be used with the Nordic Marine Insurance Plan of 2013 (Version 2019)
Lay-up Conditions 2021.