Public D&O Pricing Decreases in Second Quarter 2024

Aon Commercial Risk Solutions reported a 5.2 percent decrease in the average price per million for public directors and officers (D&O) liability insurance in the second quarter of 2024 compared to the same period in 2023. The report, published on July 29, highlights significant trends and key metrics in the D&O insurance market.

For policies renewing in both Q2 2024 and Q2 2023, the price per million decreased by 6.2 percent. Notably, 68 percent of primary policies renewing with the same limit and deductible saw a price decrease, while 11 percent experienced an increase. Overall, the price change for these primary policies was down by 6.5 percent.

Additional key metrics from the report include the following.

• 96 percent of primary policies renewed with the same limit
• 90 percent of primary policies renewed with the same deductible
• 86.5 percent of primary policies renewed with both the same limit and deductible
• 86 percent of primary policies renewed with the same insurer

The Aon Financial Services Group's quarterly pricing index tracks premium changes relative to the base year of 2001. For Q2 2024, the index decreased to 1.09 from 1.15 in the prior-year quarter, marking the ninth consecutive quarterly decrease since Q4 2017.

Overall, the average cost of $1 million in limits has dropped, reflecting ongoing trends in the public D&O liability insurance market.