Stabilizing Economy Eases D&O Liability Claims and Pricing, Says Aon
December 18 2009 - 10:00AM
PR Newswire (US)
Marketplace remains soft, according to Quarterly D&O Pricing
Index CHICAGO, Dec. 18 /PRNewswire-FirstCall/ -- Pricing for
directors' and officers' liability insurance decreased 2.7 percent
in the third quarter of 2009 compared to the rates seen in the
third quarter of 2008, according to Aon's Q3 Quarterly D&O
Pricing Index. The Pricing Index is designed to provide directors,
officers and risk managers of publicly traded corporations with a
better understanding of current and historic D&O pricing
conditions. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO) Following
double-digit increases in each of the previous four quarters,
D&O pricing for the Standard & Poor's financial
institutions sector, which includes banks, diversified financials,
insurance and real estate, increased by only 3.2 percent in Q3 '09,
reflecting a 39 percent drop from its highest point in 2003.
According to the Index, D&O pricing for all remaining S&P
industry sectors was down an average of 4.9 percent in Q3 '09.
D&O claims and pricing tend to move in the opposite direction
of the financial markets. When a company's stock is doing well,
shareholders are typically content. Thus, as the stock market has
recovered this year, the frequency of claims has slowed. In the
first three quarters of 2009, there were 130 federal securities
class action lawsuits filed, 49 related to the credit crisis. This
marks a 20 percent decrease from the 163 filings seen during the
same period in 2008. "The decreasing number of claims may signal an
end to the litigation explosion for financial services firms," said
Mike Rice, national practice leader of Aon's Financial Services
Group and author of the Quarterly D&O Pricing Index. "In 2010,
we expect the market for D&O coverage to continue to soften for
financial institutions as well as most of the other industry
sectors." To access Aon's Q3 D&O Pricing Index, visit
http://aon.mediaroom.com/index.php?s=63&item=359 Follow Aon on
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http://aon.mediaroom.com/index.php?s=58 About Aon Aon Corporation
(NYSE:AON) is the leading global provider of risk management
services, insurance and reinsurance brokerage, and human capital
consulting. Through its more than 36,000 colleagues worldwide, Aon
readily delivers distinctive client value via innovative and
effective risk management and workforce productivity solutions.
Aon's industry-leading global resources and technical expertise are
delivered locally through more than 500 offices in more than 120
countries. Named the world's best broker by Euromoney magazine's
2008 and 2009 Insurance Survey, Aon also ranked highest on Business
Insurance's listing of the world's largest insurance brokers based
on commercial retail, wholesale, reinsurance and personal lines
brokerage revenues in 2008 and 2009. A.M. Best deemed Aon the
number one insurance broker based on brokerage revenues in 2007,
2008, and 2009, and Aon was voted best insurance intermediary, best
reinsurance intermediary and best employee benefits consulting firm
in 2007, 2008 and 2009 by the readers of Business Insurance. For
more information on Aon, log on to http://www.aon.com/. Media
Contacts Kelly Drinkwine Cybil Rose 312.381.2684 312.755.3537
http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO
http://photoarchive.ap.org/ DATASOURCE: Aon Corporation CONTACT:
Kelly Drinkwine of Aon Corporation, +1-312-381-2684, ; or Cybil
Rose, +1-312-755-3537, , for Aon Corporation Web Site:
http://www.aon.com/
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