Aon Risk Solutions (U.S) has reported in its quarterly pricing index of Directors’ and Officers’ liability (D&O) insurance that its D&O price per million was up 6.1% at Q2 2018 when compared with the prior year quarter, while average change for primary policies with the same limit and deductible increased 2.6%.
The Pricing Index increased to 0.70 from 0.66 in the prior year quarter, although Aon noted that some results may be overstated due to the impact of a very large financial institution that purchases their D&O in 18-month programs, and which renewed in Q2 2018.
Looking only at those programs that renewed in both Q2 2018 and Q2 2017, Aon reported that D&O pricing decreased by 1.5%.
In terms of policies that renewed with the same limit and deductible, Aon said that 12% of primary policies received a price decrease for the second quarter, while 45% renewed flat and 44% received a price increase.
Additionally, 96.2% of primary policies renewed with the same limit at Q2 2018, while 85.4% of policies renewed with the same deductible, and 83.2% renewed with both the same limit and deductible.
Aon added that 97.5% of primary policies renewed with the same carrier in the second quarter, and said that, on average, policies renewed with the same limit, deductible and carrier experienced a 2.8% premium increase.
