Aon | Financial Services Group
The Financial Services Group at Aon Reports First Quarter 2022 Public D&O Pricing
Release Date: May 2022 On May 2nd, the Financial Services Group at Aon published the Pricing Index for Public D&O insurance for the three months ended March 31, 2022. The pricing index tracks premium changes relative to the base year of 2001.
The Pricing Index increased to 2.45 from 2.34 in the prior-year quarter, the highest Index value since Q1 2004. The average cost of $1 million in limits increased 4.7 percent compared to the prior-year quarter.
However, the Q1 2022 results were significantly impacted by two very large programs, in what is our seasonably smallest quarter, that were not in the prior-year quarter. Conversely, Q1 2021 was characterized by a large number of Initial Public Offerings (IPOs), a market that all but dried up in Q1 2022. Many of these IPOs were Special Purpose Acquisition Companies (SPACs), which tend to purchase two-year programs, and are, therefore, not in the current-year quarter. Excluding these two clients, and the IPOs, the Pricing Index Increased 15.5 percent in Q1 2022.
First Quarter Key Metrics and Highlights
- Average price per million increased 4.7 percent compared to the prior-year quarter: price per million, adjusted for certain items, increased 15.5 percent.
- Price per million for clients that renewed in both Q1 2022 and Q1 2021 decreased 2.9 percent.
- 8 percent of primary policies renewing with the same limit and deductible experienced a price decrease; 55 percent had a price increase.
- Overall price change for primary policies renewing with same limit and deductible was up 2.1 percent.
- 93.2 percent of primary policies renewed with the same limit.
- 86.3 percent of primary policies renewed with the same deductible.
- 82.2 percent of primary policies renewed with the same limit and deductible.
- 95.9 percent of primary policies renewed with the same carrier.
The FSG D&O Pricing Index for Q1 2022 is available here (registration required).
FSG provides insights into a range of risks, including D&O, EPL and fiduciary liability at FSG Quick Insights.
Contact
If you have any questions about the index please contact Peter M. Trunfio.
Peter M. Trunfio
Chief Data & Analytics Officer, U.S. - Financial Services Group
New York