Shipowners are turning to the Swedish Club’s digitised loss-prevention tool TELP for guidance on how to operate vessels in the coronavirus crisis.
The Gothenburg-based mutual launched the system late last year. After a trial, it went live just in time to help its members overcome the current difficulties in operating ships.
TELP, or Trade Enabling Loss Prevention, works by automatically sending shipowners critical loss-prevention information based on the destination input on a ship’s AIS. That has proved important when measures to prevent the spread of the disease have closed ports or meant strict quarantine measures for crew.
Swedish Club director of strategic business development Lars Malm told TradeWinds: “Right now, around 50 to 60 messages a day are going out to vessels, and the majority concern coronavirus.
“It’s been rolled out to our members since around January and so far around 20% have signed up.”
Digitisation
The service is available to the club’s protection and indemnity members and those that use its other insurance services, such as hull and machinery.
TELP is providing information not only on coronavirus loss-prevention issues but also on other areas of concern, such as navigational claims linked to certain geographical locations.
Malm said the system was developed as part of the digitisation of the Swedish Club’s business and as an addition to its service offering: “It is important in these times that we add some value to the operation for our members cost-wise.”
After benefiting from higher investment returns, it made an operating profit of $24.6m last year and generated an investment return of 10%, which helped bolster its free reserves to $228m.
In underwriting terms, however, the club is running at a deficit. Its combined ratio, which balances premium income against claims costs and expenses, was 106%, indicating a loss.
The Swedish Club attempted to address the underwriting losses through a 5% general increase at this year’s policy renewal — its first increase in premiums in four years.
