Aon Risk Solutions announced Monday in its pricing index for first-quarter 2024 that the average cost of $1 million in directors and officers coverage decreased 29.9% from the year-ago period, making it the eighth consecutive quarter for price decreases.
The brokerage reported that only 4% of renewals for D&O policies with the same rate and deductible experienced a price increase.
The average change for primary policies with the same limit and deductible decreased 5.5%.
Renewal rates were high with 95.2% of primary policies being renewed with the same limit and the same amount with the same insurer. Renewals for primary policies with the same limit and deductible were 80.6% and 83.9% of primary D&O policies renewed with the same deductible.
Aon said the results were impacted by a large client’s purchase of a two-year program in the third quarter of 2023 and therefore missing from first-quarter 2024 data. The inclusion of that client would have resulted in the pricing index decreasing 20.4%.
