D&O coverage rates down in Q4: Aon

Aon PLC said in a report issued Monday that the cost of $1 million of directors and officers liability coverage decreased 10.6% in the fourth quarter of 2024, compared with rates down 17.5% in the year-ago period.

Buyers renewing primary policies with the same limits and deductibles saw prices decrease 3.5%, and 88% of primary policies renewed with the same limit and deductible, Aon said.

More than half of primary policy buyers received a price decrease in the fourth quarter, 29% percent had a flat renewal, and 11% received a price increase, the report said.

Ninety-five percent of primary policies were renewed with the same limit and 91% renewed with the same deductible, Aon said.

According to the report, only 3% of primary policy buyers change insurers when renewing.

The pricing index for D&O coverage decreased to 1.26, down from 1.41 from the same time last year, marking the 11th quarterly decrease since 2017’s fourth quarter, Aon said.