US public D&O rate decreases accelerate to 30% in Q1: Aon
The average cost of $1m in D&O coverage for US public companies fell 29.9% from the year-ago period in the first quarter, making it the eighth consecutive quarter for price decreases, according to Aon.
The broker said the results were impacted by a large client’s purchase of a two-year programme in the third quarter of 2023 and therefore missing from first-quarter 2024 data. The inclusion of that client would have resulted in the pricing index decreasing 20.4%.
The brokerage reported that only 4% of renewals with the same rate and deductible experienced a price increase in Q1.
Renewal rates were high, with 95.2% of primary policies being renewed with the same limit and the same amount with the same insurer.
Renewals for primary policies with the same limit and deductible were 80.6%, and 83.9% of primary D&O policies renewed with the same deductible.
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