Aon | Financial Services Group
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In February, the Financial Services Group at Aon published the fourth quarter Pricing Index for Public D&O insurance. The Pricing Index tracks premium changes relative to the base year of 2001.
In Q4, the Index increased to 2.02 from 1.73 and the average cost of $1 million in limits increased 16.8% compared to the prior quarter.
Fourth Quarter Key Metrics and Highlights:
- Average price per million increased 16.8% compared to the prior year quarter
- Price per million for clients that renewed in both Q4 2021 and Q4 2020 decreased 1.1%
- Overall price change for primary policies renewing with same limit and deductible was up 3.7%
- 94.4% of primary policies renewed with the same limit
- 85.6% of primary policies renewed with the same deductible
- 80.0% of primary policies renewed with the same limit and deductible
- 96.3% of primary policies renewed with the same carrier
- 11% of primary policies renewing with the same limit and deductible experienced a price decrease – 74% had a price increase
The FSG D&O Pricing Index for Q4 2021 is available here (registration required).
Aon is not a law firm or accounting firm and does not provide legal, financial or tax advice. Any commentary provided is based solely on Aon’s experience as insurance practitioners. We recommend that you consult with your own legal, financial and/or tax advisors on any commentary provided by Aon. The information contained in this document and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity.