D&O costs rise 7.7% within the second quarter: Aon – Enterprise Insurance
Aon PLC customers are still facing price increases in directors and officers liability, but at a slower pace, according to a report released Monday.
The average price per million adjusted for certain items rose 7.7% in the second quarter, according to the report. This compares to the 30% increase the broker reported for the first quarter and the 46.6% increase in the fourth quarter.
The second quarter price per million for customers who renewed in both Q2 2021 and Q2 2020 increased 9%.
A total of 93% of primary policies renewed with the same cap and deductible had a price increase and only 3% had a price decrease, the report said.
The total price increase for primary insurance with the same upper limit and deductible was 14.2%.
A total of 92.5% of primary policies extended with the same cap; 65.3% extended with the same deductible; 61.2% renewed with the same limits and deductibles; and 92.5% extended with the same insurer.
The report said the second quarter price increase marks the 14th consecutive quarter of year-over-year price increases that followed 18 quarterly price cuts over the previous four years.
D&O liability insurance rates continued to rise on July 1, albeit at a slower pace than the most recent renewals, and many experts believe rates could be unchanged by the middle of next year.