Traditional insurance lines should continue to remain soft for Scandinavian companies, predicts JLT
Downward pressure on insurance premium prices exerted by fresh capacity should prolong the soft market for traditional lines in Sweden, according to Henrik Rydén, managing director of JLT Risk Solutions in Scandinavia.
Speaking to StrategicRISK at the SWERMA Risk Forum in Stockholm, Rydén described Sweden as a ‘guinea pig market’ for new insurance set ups.
According to Rydén the Scandinavian country is a low risk jurisdiction for insurance, because of its measured legal system and high concentration of large well risk managed companies. This benign environment, he said, is encouraging capacity to enter the market.
“Sweden is a 'guinea pig market' for new insurance set ups.
Henrik Ryden, managing director of JLT Risk Solutions in Scandinavia
He also said that companies would benefit from this perception.
But this new capacity will only depress rates on traditional lines, he said. In Sweden specialty lines, like Directors & Officers (D&O) insurance, are suffering the same problems as elsewhere—mainly caused by the financial crisis, which has provided the trigger that insurers have been waiting for to raise prices across the board. ‘The credit insurance market is in turmoil,’ added Rydén.