EXAMPLE PAGE - ANNUAL REPORT - THE SWEDISH CLUB - Flipbook - Sida 31
SERVICE AT ALL TIMES
2021 was a year when the claims outcome
deviated drastically from expectation, a
reminder that no matter how robust the
underwriting, the nature of the Club’s
business is about working with
probabilities.
Tord Nilsson, Director
Underwriting, Reinsurance
& Risk Control
“It is important to
emphasise that the
landscape in 2021 is
exactly why owners
have P&I insurance.
No matter what
happens, the Club is
there to take care of
the shipowner and the
crew.”
P&I market overview
For some years in the recent past, as a result
of a benign claims environment and large
gains in investment markets, P&I clubs have
been able to offer premiums that do not
necessarily reflect risks. In 2021 a combination
of pool claims from 2019 and 2020 developing
negatively and burdening clubs and an
unprecedentedly bad claims year affected
Hydra, reinsurers and all clubs. With many
clubs drawing on reserves to ease the burden
on owners there is still a need for adjusting
premiums in a firm manner going into 2022.
Marine market performance
The Marine side of the market has performed
fairly well, although the active freight market
for container vessels and bulkers/general
cargo vessels resulted in more claims than
was expected. The Club continues to grow its
business on all Marine lines although the
growth has slowed compared to 2020 as a
result of more capacity coming back into the
market.
Reinsurance markets
Worldwide reinsurance results were quite good
in 2021 but liability markets (P&I and
Charterers Liability insurance) have rendered
reinsurers with large losses for quite a few
years, resulting in considerable increases. The
Marine sector too, saw large losses for
reinsurers, but is now emerging from a period
of resulting corrections. As limits are a lot
lower for Marine, the reinsurance market is
less exposed for Marine insurers than for P&I
insurers.
As both lines of business are currently already
in payback mode there is likely to be very limited
patience if there continue to be losses in 2022.
At present there is a great deal more interest
from reinsurance markets for Marine business
than for P&I, given current premium levels.
THE SWEDISH CLUB ANNUAL REPORT 2021
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