D&O pricing increases moderate: Aon
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Directors and officers liability insurance pricing increased 67.9% on average in the third quarter for Aon PLC clients, which was a moderation from 74.4% in the second quarter.
Furthermore, when eight of the 20 largest programs by premium, which were initial public offering programs not included in last year’s sample, are excluded, the Q3 2020 pricing index increased 49.1%, according to the report.
The price per million for clients that renewed in both the 2020 and 2019 third quarters increased 40%, which compared with the 61.2% increase reported in the second quarter.
Ninety-eight percent of those renewing with the same limit and deductible saw a price increase, none renewed flat and 2% saw a price decrease.
The overall price change for primary policies renewing with the same limit and deductible was up 22.2%, compared with 23.4% in the second quarter.
A total of 87% of primary policies renewed with the same limit; 49.6% renewed with the same deductible; 45.2% renewed with the same limit and deducible; and 93% renewed with the same insurer.
