The average price for directors and officers liability insurance decreased 5.2 percent per $1 million in limits in the second quarter, according to Aon Commercial Risk Solutions.
Aon said the decrease compared to the same quarter in 2023 was the ninth straight quarter of year-over-year price decreases for D&O insurance purchased by publicly traded companies, and programs that renewed in the second quarters of 2024 and 2023 saw prices decline 6.2 percent.
Aon’s quarterly pricing index looked at primary policies that renewed with the same limit and deductible as the year prior. Of these, 68 percent got a price decrease, 21 percent renewed flat, and 11 percent received a price increase. The average price decrease for like-for-like renewals was 9.7 percent. The average increase was 7.2 percent.
Nearly all primary D&O policies in the second quarter (96 percent) were renewed with the same limit. The same deductible was renewed on 90 percent of policies. Just 1.4 percent of policies were renewed with a different carrier in the second quarter.
Focusing on each of the three months of the second quarter, Aon said 17 percent of renewals saw primary prices increase in April. Increases fell to 12 percent in May and 6 percent in June. However, the largest average price increase was in may, at 10.3 percent.