Aon | Financial Services Group
High-growth companies with initial public offering (IPO) aspirations face multiple risk, governance and people challenges. Aon’s comprehensive suite of specialty solutions is uniquely positioned to address many of these challenges across the risk, governance, and people spectrum. Specifically, Aon’s Financial Services Group (FSG) is a leader in designing bespoke management liability solutions, including outstanding directors’ and officers’ liability (D&O) insurance for pre-IPO companies.
Directors’ and Officers’ Insurance for Newly Public Companies
Too often, in the rush of initial public offering (IPO) preparation, insurance placements – including directors’ and officers’ (D&O) liability insurance – take a backseat. However, liability risks can occur, especially in the first three years after an IPO.
With a heightened litigation environment and a dynamic insurer appetite for these risks, it is imperative to develop a multi-faceted approach to brokering IPO insurance placements - utilizing both traditional and non-traditional markets and program structures to optimize pricing and capacity.
Broad Scope of Experience
Exposures for high-growth, public companies are varied - and can involve risks such as cyber, M&A/transactional liability, Fair Labor Standards Act/wage and hour, executive benefits, and product liability. Our dedicated professionals in these areas can provide innovative solutions across your risk profile.
Considering an IPO?
Key aspects of our pre-IPO D&O placement approach include:
Private Company D&O
Our Private & Nonprofit Practice (PNP) is the premier brokerage solution for negation and placement of management liability coverage for private companies. Our established PNP carrier panel provides competitive coverage and pricing for our private company clients.
Fundamentally, selecting consistent insurers that have not only the ability, but also the willingness to pay, is a core D&O insurance challenge. Aon’s tools, such as our carrier behavior matrix and carrier market share analytics, enable our clients to make better decisions.
Our team of forty-plus FSG legal & claims professionals focus exclusively on management liability insurance. They are integrated into the broking team and involved in both pre-placement discussions with clients and carriers and post-claim negotiation. Aon FSG has recovered approximately $4 billion of claim payments on behalf of our clients, and we have been involved in 14 percent of all federal securities class actions.
Board-ready Data and Analytics
Benchmarking provides the foundation for evaluating insurance program metrics, and Aon’s benchmarking capabilities are second to none. Moreover, our analysis goes beyond pure benchmarking to include evaluation of securities and derivative claim settlement data and our actuarially based D&O insight review.