The Swedish Club has will not impose a general increase for P&I year 2019/20, the fourth year in succession that a 0% general increase has been imposed.
The Club’s board said that the decision had been made while considering the general market view that premiums were not in proportion with expected claims outcome.
Swedish Club managing director Lars Rhodin said that in a number of shipping sectors the market remained weak and the Club was committed to supporting members at this crucial point. “At the same time, we must balance this with the fact that we have seen premium erosion for a number of years, to the extent there is a danger of the formula becoming unworkable. For the benefit of our members and the long-term future of the Club, we need to ensure premiums remain in line with exposures.” Rhodin noted that claims inflation was running at 3%.
The current year of P&I underwriting for the Club was expected to be balanced. Members’ individual premiums as usual would be adjusted based on records and exposure.