Aspen looks at potential premium price increases

Company suggests that rate surge could hit the 20% barrier

Aspen looks at potential premium price increases

Insurance News

By Lyle Adriano

Aspen Insurance is expecting to see rate increases of up to 20% in both its insurance and reinsurance lines next year.

In a recent presentation to investors, the insurer said that it projects rate increases following the high levels of hurricane-related losses in the third quarter of this year. Aspen reported losses of US$310 million – net of reinsurance and reinstatement premiums – due to the impacts of Hurricanes Harvey, Irma, and Maria.

The company revealed tables to investors detailing the expected rate changes for specific lines of business:
Insurance line of business Rate change
Global energy and construction 10%-20%
Global marine 7.5%-15%
US property and programs 5%-15%
Reinsurance lines of business Rate change
US property catastrophe 5%-20% (more projected if loss affected)
International property catastrophe 2.5%-10%
US risk excess and pro rata 2.5%-10%
International risk excess and pro rata 2.5%-7.5%
Marine 5%-15%

Related stories:
Aspen embarks on cost-cutting drive
Aspen sheds light on hurricane loss total as Irma claims hit US$5 billion

Keep up with the latest news and events

Join our mailing list, it’s free!