Primary liability rates should rise through 2025: Aspen
Primary insurance liability rates will continue to strengthen throughout 2024 and 2025 to follow loss trend and reserve development, putting paid to lingering hopes the market might stabilise, Bermudian specialty re/insurer Aspen believes.
“We expect rates to continue to strengthen in 2024 and 2025,” Rebecca Gitig, head of primary liability at Aspen, said in a message to market partners.
“There was some perception that rates were stabilizing in the primary liability space, but as we have seen, loss trends continue to deteriorate and as the market discusses adverse loss development in recent years, it is really imperative that we maintain rate discipline, especially in the long-tail classes of business that we at Aspen target,” she said.
Aspen will “aggressively” pursue well-priced business in 2024, particularly within the wholesale-only distribution of hard-to-place risks that Aspen calls its specialty and where Aspen “tend[s] to attract really interesting opportunities.”
Top priorities for 2024 are “optimising the portfolio and aggressively pursuing profitable opportunities while avoiding what we refer to as the ‘land mine’,” she said.
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