Aon clients see decline in average D&O pricing in Q2

Aon PLC’s clients saw a 14.7% decrease in the average price per million for their directors and officers liability policies in the second quarter compared with the prior-year period, according to a report released Monday.

The price per million for clients that renewed in both 2022 and 2021’s second quarters decreased 7.6%, according to the report.

The report said second-quarter results were significantly impacted by two large clients that purchased 18-month programs in last year’s second quarter and were not included in this year’s second-quarter results. Excluding those two clients, the pricing index decreased 6.5%, the report said.

The overall price change for primary policies renewing with the same limit and deductible was down 0.5%.

Twenty-five percent of primary policies renewing with the same limit and deductible had a price decrease, while 37% had a price increase.

The report said 97.3% of primary policies renewed with the same limit; 87.3% renewed with the same deductible; 86% renewed with the same limit and deductible; and 96.7% renewed with the same insurer.