From Tradition to Innovation: The Swedish Club’s Journey in Maritime Insurance

6 August 2024

One of SCC’s newest members, The Swedish Club, tackles the deep sea by providing insurance in the maritime industry. Having taken part at the inaugural Maritime Forum 2024 – A Resilient Future, the SCC sat down with Tord Nilsson, Area Manager UK and Head of Reinsurance, to discuss the ambitions of The Swedish Club, the challenges, and the opportunities of the maritime and shipping industry.

Established back in 1872, The Swedish Club has been part of the maritime insurance industry since ships were made of wood, and contracts were signed in ink. Having preserved through the many changes and challenges facing the maritime industry over the years has equipped Swedish insurers to face many challenges head-on.

With London arguably being the insurance and reinsurance capital of the world, the choice of having a permanent office here came easy. In 2015, The Swedish Club added the UK office to the list of representatives, alongside the already established teams in Sweden, Norway, Greece, and Hong Kong. Since then, The Swedish Club has also opened an office in Singapore in 2022. 

Anchored in innovation: What sets the Swedish Club apart? 
In a city flooded with insurers, The Swedish Club is unique. Beyond the logo of the sea god Triton with his conch shell lies a deep commitment to its well-established clientele. This not only means that The Swedish Club is owned by their clients - something uncommon in the maritime world - but puts all the efforts of the company into trying to provide their clients with insurances and services which support their business models and exposures. 

“Being a mutual is more important than ever today,” stated Tord Nilsson. “Being at the forefront and facing the future is key to be able to provide our members with the flexibility that they need in today’s rapidly changing environment. It’s something that always has been important to the Swedish Club but that will now be the key focus, moving forward.” 

The Swedish Club celebrated the launch of their Cyber insurance at the beginning of the calendar year. Approaching marine cybersecurity in a unique way, The Swedish Club offers coverage based on the cyber maturity of the owners, tailoring protection to the level they feel is necessary.

The unique approach ensures that the company provides the needed flexibility for their members, making sure that the members receive only the best possible solution for their organisation and needs.

Tackling maritime insurance challenges
The last few years have been challenging for multipe types of organisations, including maritime insurers. Geopolitical turmoil, shifting sanctions, and compliance with government regulations have all played a part. The key to navigating these issues is adaptability - combined with efficiency.

Although the world faced Covid, the Russian Invasion of Ukraine, and now the current turmoil in the Southern Red Sea and Indian Ocean, The Swedish Club is used to turbulence. According to Tord, this is exactly the kind of circumstances which the insurance and reinsurance industry is meant for.

“We have an organisation and company that is built to find solutions to problems together with our business partners and we do find ways of resolving what we are faced with,” he says. “Cooperation like this is key to success in the rapidly changing environment in which we are operating these days.” 

Navigating tomorrow: The Swedish Club’s vision for the future
Despite the changing environment and numerous uncertainties, the maritime industry is constantly evolving and seeking to improve. As a result, the future looks bright.

The International Maritime Organisation (IMO) has set ambitious targets for the decarbonisation of shipping, something that The Swedish Club welcomes with open arms and a positive attitude.

“We are embracing the shift in fuels as it will have a very positive impact on the environment and the world we live. In short term, we will have to review our exposures as developments allow us to redefine risk and premium structures.”

As for the future, Tord is hopeful. From digitalisation to the use of AI, how the the Swedish Club operates in the marine insurance field are to always look at the horizon. Eventually, autonomous vessels with very small, if any, crew will enter the space and the insurance industry will have to adapt, Tord believes.