Aspen expects rate increases of up to 20%
Bermuda-based specialty re/insurer Aspen Group is expecting significant rate increases of up to 20 percent in some business areas.
In primary insurance, Aspen expects between 10-20 percent rate increases in global energy and construction lines of business, according to a third quarter 2017 investor presentation.
Global marine may face rate hikes of between 7.5 percent and 15 percent, while US property programs may see rate increases of between 5 percent and 15 percent.
In reinsurance the US property catastrophe lines of business are expected to see the biggest rate increases with 5-20 percent and even more if affected by losses recently.
In international property catastrophe reinsurance as well as in US risk excess & pro rata Aspen expects rate hikes of 2.5 and 10 percent.
Also in the reinsurance business, international risk excess & pro rata rates may increase between 2.5-7.5 percent and in marine by 5-15 percent.
Rate increases are being driven by significant losses from natural catastrophes in the third quarter in North America. Total insured market losses from events like Hurricane Maria, Irma and Harvey are expected at between $56 billion and $145 billion, according to estimates.
Aspen’s losses from the hurricanes came in at $310 million, lower than market expectations and lower than peer average, according to the presentation.
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