D&O costs decline in third quarter

The average cost per million of directors and officers liability insurance fell 5.9% in the third quarter of 2017 compared with the same period last year, according to an Aon Risk Solutions survey.

According to the brokerage’s quarterly D&O pacing index report released Monday, Aon clients that renewed coverage in both the third quarter of 2017 and the third quarter of 2016 saw a 3% decrease in the price per million of D&O limits.

A total of 39% of primary policies renewing with the same limit and deductible had a price decrease, while 26% had a price increase, according to the report.

The overall price change for primary policies renewing with the same limit and deductible was down 0.7%, said the report, with 97.7% renewing with the same limit, 86.3% renewing with the same deductible and 93.9% renewing with the same insurer.