Directors’ and officers’ (D&O) insurance rates have increased by an average of 15% in the US financial sector, according to Aon.

The broker’s quarterly US market overview reveals D&O rates have firmed strongly as economic turmoil takes its toll.

“In the financial institutions marketplace, rates are increasing significantly, capacity is shrinking and coverage terms are tightening,” an Aon report issued last week said.

An Aon UK spokesman said the UK market “experienced similar increases” but strong competition is holding back more extreme pricing action.

The tight D&O markets in the US and UK are in contrast to other industries, where Aon says competitive rates and ample capacity remain.