Each quarter, Aon’s Financial Services Group (“FSG”) publishes a pricing index of D&O insurance that tracks premium changes relative to the base year of 2001. The Pricing Index increased to 1.84 from 1.43 in the prior year quarter. The average cost of $1 million in limits increased 28.7 percent compared to the prior year quarter.
However, the Q2 2021 results were significantly impacted by two very large renewals that were not in the prior year quarter. Additionally, fully 10 percent of the programs in the Q2 2021 sample were new Initial Public Offering (IPO) programs. Excluding the two large renewals, and the IPOs, the Pricing Index increased 7.7 percent in Q2 2021.