On May 1st, the Financial Services Group at Aon published the Pricing Index for Public D&O insurance for the three months ended March 31, 2023. The pricing index tracks premium changes relative to the base year of 2001.

The Pricing Index decreased to 1.84 from 2.45 in the prior-year quarter, the fourth quarterly decrease since Q4 2017. The average cost of $1 million in limits decreased 24.9 percent compared to the prior-year quarter.

First Quarter Key Metrics and Highlights

• Average price per million decreased 24.9 percent compared to the prior-year quarter.
• Price per million for clients that renewed in both Q1 2023 and Q1 2022 decreased 22.3 percent.
• 80 percent of primary policies renewing with the same limit and deductible experienced a price decrease; 9 percent had a price increase.
• Overall price change for primary policies renewing with same limit and deductible was down 7.9 percent.
• 98.6 percent of primary policies renewed with the same limit.
• 77.5 percent of primary policies renewed with the same deductible.
• 77.5 percent of primary policies renewed with the same limit and deductible.
• 94.4 percent of primary policies renewed with the same carrier.

FSG provides insights into a range of risks, including D&O, EPL and fiduciary liability at FSG Quick Insights.

Contact

The index can be discussed with Financial Services Group professional Peter M. Trunfio.



Peter M. Trunfio
Chief Data & Analytics Officer, U.S. - Financial Services Group
New York