In our third and final segment of the interview with Stephen Kyriacou Jr., a managing director and senior lawyer in Aon’s Litigation Risk Group, we continue to delve into the intricacies of litigation risk insurance policies as well as the future prospects of this rapidly evolving industry.
Led by the dynamic Stephen Kyriacou, the Aon team anticipates a focus on harnessing fruitful opportunities and creating ancillary benefits for clients. Projected growth is on the horizon, with deal flow, increasing investment, and robust action in this sector.
Speaking on potential challenges and changes, Kyriacou believes trends from recent times will persist. Rates are expected to surge slightly, with the ‘10% to 15% rate-on-line’ metric projected to be closer to ‘12.5% to 17.5%’. Factors including a variety of risk factors and the gradual maturation of the litigation risk insurance market are believed to influence these forthcoming adjustments.
Reflecting on the judgment preservation insurance challenge, particularly in patent infringement cases, Stephen anticipates this sector contracting slightly. Despite this, there are expectations for increased insurance access for litigation funders and contingent fee law firm risks.
Ultimately, the future points towards sustained expansion of the litigation and contingent risk insurance business. The wider understanding of the field, growing underwriting capacity, and advancing expertise among brokers and insurers are believed to act as key drivers in facilitating this growth. Nonetheless, opportunities and challenges are inherently part of this dynamic. The industry continues to mature, adding significant value for insurers and insured alike and creating anticipation for what lies ahead.
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