Norwegian protection and indemnity insurer Skuld has told members it wants to raise 10% more in premiums at next year’s renewal.
In a note to members explaining the increase, the Oslo-based mutual said although its financial performance had improved “there is still some way to go” to achieve rate adequacy in the sector.
“There are early signs that claims costs are increasing due to inflation, but the full effect of the global impact of inflation is yet to be realised, although it will have a negative financial impact in the short to medium term,” Skuld said.
Skuld will achieve the rate increase through assessments of individual members’ claims performance and risk exposure.
Meanwhile, the London P&I Club has said it will not be setting a general increase target. The mutual said its claims, income and tonnage growth this year are in line with expectations.
However, it has been impacted by an increase in the cost of the International Group of P&I Clubs’ prior year of pooled claims.
The London P&I Club said it had recorded an unrealised 5.3% investment loss mainly due to an increase in interest rates.
Next year, it will assess its member ratings on an individual basis. The assessment will also include “the anticipated impact of inflation on future claims costs”.
The London P&I Club said it wanted to see “an equitable contribution to a balanced underwriting result made by all members of the club”.
