Pricing for directors and officers liability insurance increased 22.6% for programs that clients renewed in the third quarters of 2019 and 2018, according to the D&O pricing index for the three months ended Sept. 30, 2019, published by Aon PLC's financial services group.
The increase excludes three clients with much higher rates. Including these clients, the increase would have been 64.2%.
The index tracks changes in premiums from a 2001 baseline with an assigned value of 1.00 for $1 million in coverage. The pricing index rose to 1.12 from 0.66 in the year-ago period, the highest quarterly index value since the final quarter of 2009, and the average price per $1 million in limits increased 29%, excluding the three clients.
On this basis, the increase represents the seventh consecutive quarter in which D&O pricing climbed year over year.
According to the broker, the overall price change for primary policies renewing with same limit and deductible in the third quarter was up 12.1%.