EXAMPLE PAGE - ANNUAL REPORT - THE SWEDISH CLUB - Flipbook - Sida 19
MANAGING DIRECTOR'S REPORT
Claims
part is to grow with the right type of
tonnage or risk. The Club wants quality,
not quantity”, he says.
there is a casualty, increasingly
draconian rulings in the courts,
government action, and
demands/awards for higher
“We grew our P&I business recognising
compensation. “It is often a case of ‘find
that the market is moving. It is important
a scapegoat and punish’. The severity of
to constantly adapt at all times as the
claims when there is a major casualty is
market changes. Member retention in P&I so much higher now than it was in the past,
stood at 98%, which was a positive result.” driven by this social inflation.
The year was defined by a high general
claim activity and pool claims. The total
loss of the X-Press Pearl container ship a brand new vessel – was a high profile
casualty, where the Club had the hull lead.
The Ambition Journey bulk carrier was
also a total loss after grounding on an
uncharted rock in the Philippines. The first
P&I pool claim in four years for the Club.
In P&I generally, the situation has been
very much affected by what he calls
“Suffice to say that the wreck removal was ‘social inflation’ – a combination of a
carried out swiftly – on time and on budget society that shows no tolerance when
– reinforcing the Club’s unparalleled
reputation for claims handling."
“P&I clubs need to address this imbalance,
because premiums are simply not at the
level required to meet this kind of exposure.”
“Our strong
financial standing
enabled us to
manage the
situation.”
COVID-19 related claims doubled in
number compared with 2020, but tripled
in terms of cost, says Rhodin. Ships were
quarantined and forced to cease
operations, attracting associated
wharfage and other charges, which were
particularly high in China. In some cases
where crew required hospital treatment,
the charges incurred were exceptionally
high due to pandemic restrictions and
precautions taken by authorities.
Developing the business
During 2021 the Club’s Marine portfolio
grew by the equivalent of 18% in vessel
numbers and there was also an 8%
growth in P&I based on gross tonnage.
The growth has been according to plan,
notes Rhodin, “but the most important
THE SWEDISH CLUB ANNUAL REPORT 2021
19