D&O liability rate decrease accelerates: Aon
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The downturn in directors and officers liability rates continues to accelerate, with Aon PLC’s clients reporting a 17.8% adjusted decrease in average price per million for their D&O liability policies in 2022’s fourth quarter, compared with the same period in 2021, the broker said Monday.
This compares with the 14.7% adjusted decrease reported in the third quarter.
When results for a large client that purchased an 18-month program in the second quarter of 2021 is included, the decrease is 15.3% for the fourth quarter, the broker said.
The price per million for clients that renewed in both 2022 and 2021’s fourth quarter decreased 17.6%.
A total of 65% of primary policies that renewed with the same limit and deductible had a price decrease, while 9% had an increase.
The overall price change for primary policies renewing with the same limit and deductible was a 5.1 % decrease.
A total of 96.5% of primary policies renewed with the same limit, 82.9% renewed with the same deductible and 80.6% renewed with the same limit and deductible. A total of 97.1% of policyholders renewed with the same insurer.
While D&O liability insurance policyholders are seeing their first soft market in years, a host of issues are creating significant uncertainty.
