D&O pricing decreased in 2016: Aon

Pricing for directors and officers liability insurance decreased for both the fourth quarter of 2016 and the entire year, with little change in coverage or movement between insurers, says Aon Risk Solutions in its quarterly D&O pricing index report for fourth quarter 2016.

For the fourth quarter, the price per million in limits for clients that renewed in both fourth quarter 2016 and fourth quarter 2015 decreased 10.8%, according to the index, which was released Wednesday.

A total of 56% of primary policies renewing with the same limit and deductible experienced a price decrease, while 16% had a price increase. The overall price change for primary policies renewing with the same limit and deductible was down 3.6%.

The index also showed that 95.8% of primary polices renewed with the same limit, 93.4% renewed with the same deductible and 95.2% renewed with the same insurer.

For the year, D&O pricing per million for clients that renewed in both 2016 and 2015 was down 8.1% compared to the prior year.

A total of 52% of primary policies renewing with the same limit and deductible had a price decrease, while 15% had a price increase. The overall price change for primary polices renewing with the same limit and deductible was down 4.6%.

A total of 95.5% of primary polices renewed with the same limit, 92.6% renewed with the same deductible and 95.3% renewed with the same insurer.