D&O rate hikes narrowing: Aon

Aon PLC clients saw lower rate hikes for their directors and officers liability policies in the third quarter, according to a report released Monday.

Average price per million increased 4.3% for the quarter from last year’s third quarter. That compared with year-over-year increases of 7.7% for the second quarter, 30% for the first quarter and 46.6% for last year’s fourth quarter.

The price per million for clients that renewed in both 2021 and 2020’s third quarter increased 2.6%.

A total of 81% of primary policies renewing with the same limit and deductible had a price increase, and 2% had a decrease.

The overall price change for primary policies that renewed with the same limit and deductible was up 7.3%.

A total of 95.8% of primary policies renewed with the same limit; 78.8% renewed with the same deductible; 75.4% renewed with the same limit and deductible; and 93.2% renewed with the same insurer.

Aon said in its commentary that this year’s third-quarter increase represented the 15th consecutive quarter of year-over-year rate increases, which followed 18 quarterly price decreases over the prior four years.