Aon reports drop in D&O rates for ninth consecutive quarter

Rates for $1 million in directors and officers liability coverage dropped 5.2% in the second quarter, compared with the prior-year quarter, marking the ninth consecutive quarter of decreases, Aon Risk Solutions said Monday.

The brokerage said its pricing index decreased to 1.09 from 1.15 in the prior-year quarter.

Renewal rates were high, with 96% of primary policies being renewed with the same limit, 90% renewed with the same deductible, 86.5% renewed with the same limit and deductible, and 86% renewed with the same carrier.

The average decrease in rates was 9.7%, and the average increase was 7.2%.

Only 11% of policyholders saw an increase in rates, while 68% saw rates decrease, and 21% had flat renewal rates, Aon said.