The Swedish Club has set a 12.5% general increase in premiums ahead of next February's policy renewal to address raising claims and underwriting losses.
The Gothenburg-based insurance mutual is the last of the 13 members of the International Group of P&I Clubs to announce its position on pricing ahead of next year's renewal.
All the 13 mutual P&I clubs have been hit by two record-breaking years of International Group pool claims and costly crew claims linked to the coronavirus pandemic.
Planned increases across the International Group range from 5% to 15%, with the majority of P&I clubs opting for 12.5%.
Swedish Club managing director Lars Rhodin said that premiums need to increase in line with the cost of claims.
"2021 has not only been a very volatile year for claims, but we have also seen more Covid-related claims coming into the system, in addition to claims drivers relating to legislation, social inflation and claims inflation," he said.
Diversified business
The Swedish Club is a diversified insurance business that covers both P&I and general marine insurance.
The Swedish Club reported a combined ratio of 132% in the first half of this year, indicating a substantial underwriting loss.
"This challenging environment requires a steady hand, and our aim is to be prudent, thus continuing to provide our members with the stability and excellent claims handling that they have grown to expect from us," Rhodin added.
