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The insurance premium for 2023 increases by five percent on average for the members of UFDS, which is somewhat lower than the general level of Danish workers' compensation insurance. The primary reason is a decreasing accident rate in our portfolio.

In the The Danish Shipowners’ Accident Insurance Association (UFDS), preparations for the coming year are on top of the agenda, and one of the central items is premiums and other conditions for the renewal on 1. January 2023.

For the new year, the Board of Directors has set the single basic premium at DKK 7,560 per full-time insured person on a full-year basis (360 days per year) corresponding to DKK 21 per sailing day/service day. On average, this means a price increase of DKK 1, equivalent to five percent.

Thus, we place ourselves well below the general level of Danish workers' compensation insurance, where the expectation is increases of 10-15 percent, in a market characterized by growing inflation rates and increased costs in several areas. The reason for the moderate price increase is to be found in the declining accident rate we see in our portfolio.

»It is of course very gratifying that our members have such a steady hand when it comes to security. Obviously for the seafarers, but also for us, because it means that we are still able to offer a more favorable premium than the general market development dictates,« CEO of UFDS Jacob Munch says.

Premium differentiation

In 2020 UFDS introduced premium differentiation so that each member's premium better reflects his or her own risk profile. Based on the distribution of historical damage between the hazard classes in the period 2006-2016, we have set the following basic premiums per hazard class: 

Hazard class Basic premium 2023 per day per person
Goods 20,30 DKK
Offshore 27,75 DKK
Passengers 22,25 DKK
Tank 18,60 DKK

 

In addition, with effect from 2022, we have simplified the model so that three tariffs are calculated per hazard class. Each member shall be allocated one of the three tariffs within the relevant hazard class. The tariff is determined on the basis of each company's injury statistics within the last five years.

There is still a high element of solidarity in the setting of the premium, partly between the hazard classes and within each hazard class. It is the board's wish to maintain this solidarity approach in pricing, but at the same time to have a pricing structure that rewards members with fewer accidents.

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The Danish Shipowners’ Accident Insurance Association (UFDS)