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D&O Prices Inch Up, While Incumbents Keep Cost Attractive For Many Buyers

The gap between attractive prices being charged by incumbent directors and officers liability insurance carriers and higher premiums that have been charged by competitors in recent quarters has started to narrow.

By Susanne Sclafane | Updated on August 02, 2009

The gap between attractive prices being charged by incumbent directors and officers liability insurance carriers and higher premiums that have been charged by competitors in recent quarters has started to narrow, according to a broker executive.

Michael Rice, chief executive officer of Aon’s Financial Services Group in Denver, Colo., also predicted that D&O insurance prices could show an uptick for only the second time in 22 quarters when Aon publishes its second-quarter D&O price index this month.

He stopped short of linking the two trends together, however, attributing the overall price reversal instead to the simple fact that prices have nowhere to go but up at this point.

Giving some background on the development of Aon’s quarterly D&O pricing index, Mr. Rice said Aon separately tracks what incumbent and non-incumbent carriers quote on D&O program layers, and what non-incumbents charge, noting that the traditional relationship would have incumbents quoting higher.

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