The average price per million of directors and officers (D&O) cover has increased 4.3% year-on-year for the third quarter, according to Aon’s Quarterly D&O Pricing Index.
The pricing index increased to 1.96 for the third quarter, from 1.88 one year ago. This increase represents the 15th consecutive quarter of year-over-year price increases. This period follows an 18-quarter spell of pricing decreases.
The price per million for clients that renewed in both Q3 2021 and Q3 2020 increased by 2.6%. A large majority (81%) of clients encountered price increases, with only 2% of primary policies renewing with the same limit and deductible experiencing a price decrease.
Meanwhile, the overall price change for primary policies renewing with the same limit and deductible increased by 7.3%
Most clients decided to stay put, with regard to their limits and deductibles. Almost all (95.8%) primary policies renewed with the same limit, while 78.8% of primary policies renewed with the same deductible. This combined for 75.4% of primary policies renewing with the same limit and deductible. Most clients also stayed with their insurer, with 93.2% of primary policies renewed with the same carrier.
Securities class action litigation is down for 3Q 2021, as well as in projections for the whole year. Data from Stanford Law School’s Securities Class Action Clearinghouse showed that there were 47 new federal securities class action cases in the third quarter of 2021, 52% lower than the same period a year ago. The projected number of filings for the whole year was 203, 37% lower than 2020’s 322 cases.
