Skuld is aiming to boost premium income by 5% in 2025 after reporting rising costs because of the “increasing complexity” of global insurance.
The Norwegian protection and indemnity provider said a tighter financial position was also linked to inflation affecting claims costs and an increase in larger claims of more than $1m.
In September, the club announced a first-half underwriting loss of $30m, equivalent to a combined ratio of 111%. A combined ratio of more than 100% represents an underwriting loss.
But an increase in premiums from shipowners and a strong investment return of 5.1% outweighed the increased costs and allowed it to report an overall positive result of $25m.
P&I clubs say they have been forced to put extra resources into compliance checks because insurance is a key element of Western governments’ efforts to impose a price cap on oil shipped from Russia.
Mark Church, head of the sanctions committee of the International Group of P&I Clubs, which includes Skuld, has said measures will grow and become more complex in the coming years.
P&I clubs across the board this year have announced an uptick in claims and planned premiums after two years of few casualties.
Brokers and clubs expect premiums to increase by 2.5% to 10% this year because of the increased claims, which have already topped those in 2022 and 2023.
Skuld’s board set the 5% target to “balance future expected claims costs”, with members given a 5% discount if they renew in February.
CEO Stale Hansen said in September that a return to a “normal” claims environment meant rates had to be adjusted to absorb higher costs.
