Aon D&O Pricing Index Shows Decrease in First Quarter of 2024

Aon released its Quarterly D&O Pricing Index: First Quarter 2024, revealing notable trends in the directors and officers (D&O) insurance market.

Key highlights from the report include the following.

• The average price per million decreased by 29.9 percent compared to the prior year quarter.
• Price per million for clients renewing in both Q1 2024 and Q1 2023 decreased by 15.0 percent.
• 76 percent of primary policies renewing with the same limit and deductible experienced a price decrease, with only 4 percent seeing an increase.
• The overall price change for primary policies renewing with the same limit and deductible was down 5.5 percent.
• 95.2 percent of primary policies renewed with the same limit, while 83.9 percent renewed with the same deductible.
• 95.2 percent of primary policies were also renewed with the same insurer.

The pricing index for public D&O insurance decreased to 1.29 from 1.84 in the first quarter of 2023, marking the eighth quarterly decrease since Q4 2017. The average cost of $1 million in limits decreased significantly compared to Q1 2023.

However, Aon noted that while its Q1 2024 results represent its smallest quarter seasonally, the results were further influenced by the absence of a very large communication services client that purchased a 2-year program in Q1 2023. Excluding this client, the pricing index decreased by 20.4 percent in Q1 2024, Aon said.

Aon's Quarterly D&O Pricing Index: First Quarter 2024 tracks premium changes relative to the base year of 2001, providing valuable insights into the evolving landscape of D&O insurance pricing.