The Bergen-based insurer Norwegian Hull Club (NHC) is moving out of the protection and indemnity insurance business after 14 years.
The mutual said it had been unable to establish a profitable P&I business since it expanded into the market in 2018.
NHC will no longer renew or enter into P&I-related owners, charterers and freight defence and demurrage (FD&D) insurance cover.
The club said it would maintain service levels for current P&I clients until its current risks expire.
Although the diversification into P&I proved unprofitable, the insurer said it had “been an investment in knowledge and experience”.
“Through offering P&I insurance and implementing liability matters as part of the NHC service concept, we have built and shared knowledge that has resulted in an overall increased understanding for liability issues,” said chief executive Hans Christian Seim.
Both the mutual and fixed-premium P&I market have struggled over recent years with poor rates and high levels of claims.
The decision to quit P&I goes somewhat against the Nordic model of marine insurance. Insurers such as Gard and Skuld, in Norway, and the Swedish Club have built their businesses around combining hull and machinery covers with P&I insurance.
NHC is predominantly a hull-and-machinery and energy insurer and will now look to develop alternative business areas after dropping P&I.
Founding member
NHC has recently put an emphasis on sustainability and is one of the founding members of the Poseidon Principles for Marine Insurance.
The club said it remains committed to supporting the marine and offshore energy industries in the drive towards zero emissions.
NHC said it would continue to develop insurance products and services for sustainability-driven industries.
The insurer said it had identified a demand for tailor-made covers for special risks arising from the growing demand for renewable energy.
