The Swedish Club reached a milestone in 2011, with its P&I portfolio increasing to just over 50 mil¬lion GT. In his report to the Club’s Board, meeting in London December 1, Managing Director Lars Rhodin gave his overview of progress in a year of mixed fortunes.
Lars Rhodin said: “The Swedish Club continued to grow throughout 2011 and, certainly, the attain¬ment of the 50 million GT mark is a significant achievement.
At the same time, on a broader front, all Inter¬national Group Clubs have seen a recent upturn in claims severity as well as frequency. Additionally claims inflation is also gaining ground. While it is too early to draw conclusions from these emerg¬ing trends, the overall situation does require close monitoring.
Nevertheless, The Swedish Club is benefit¬ing from a positive momentum with a continued positive feedback from owners and from the broking community.
During the London meeting, The Swedish Club’s Board agreed a General Increase of five per cent for the 2012 — 2013 P&I policy year, in addi¬tion to changes to cover Group reinsurance costs. Deductibles are to be increased with USD 1,000 in respect of cargo and crew claims. In the case of Freight, Demurrage and Defence, a General Increase of five per cent will apply, together with an increase in standard deductibles from USD 7,500 to USD 10,000.
Lars Rhodin told Board Members: “These increases are much in line with claims inflation and do not contrast with other leading members of the International Group of P&I Clubs. This is a prudent approach. The increases reflect the cur¬rent realities in the market: an upsurge in claims frequency and severity, together with claims inflation now in the 3-5 per cent range.”