Average Price Per Million, Adjusted for Certain Items, decreased 20.4 Percent in the First Quarter
Average Change for Primary Policies with Same Limit and Same Deductible decreased 5.5 Percent
First Quarter Key Metrics and Highlights
- Average price per million decreased 29.9 percent compared to the prior-year quarter.
- Price per million for clients that renewed in both Q1 2024 and Q1 2023 decreased 15.0 percent.
- 76 percent of primary policies renewing with the same limit and deductible experienced a price decrease; 4 percent had a price increase.
- Overall price change for primary policies renewing with same limit and deductible was down 5.5 percent.
- 95.2 percent of primary policies renewed with the same limit.
- 83.9 percent of primary policies renewed with the same deductible.
- 80.6 percent of primary policies renewed with the same limit and deductible.
- 95.2 percent of primary policies renewed with the same carrier.
On April 29th, the Financial Services Group at Aon published the Pricing Index for Public D&O insurance for the three months ended March 31, 2024. The pricing index tracks premium changes relative to the base year of 2001.
The Pricing Index decreased to 1.29 from 1.84 in the prior-year quarter, the eighth quarterly decrease since Q4 2017. The average cost of $1 million in limits decreased 29.9 percent compared to the prior-year quarter.
However, Q1 2024 results, our seasonally smallest quarter, were impacted by a very large Communication Services client that purchased a two-year program in Q1 2023, and therefore was absent from the corresponding Q1 2024 sample.
Excluding this client, the Pricing Index decreased 20.4 percent in Q1 2024.
The FSG D&O Pricing Index for Q1 2024 is available here (registration required).
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