D&O insurance sees 13th consecutive quarter of year-on-year price falls

The cost of directors’ and officers’ (D&O) liability insurance fell by approximately 2.8% over the past year, according to Aon.

The broker’s quarterly D&O Pricing Index, released 6 August 2025, marked the 13^th consecutive quarter that D&O prices have fallen year-on-year.

Prolonged pricing adjustments are nothing new for D&O insurance, which before the latest slew of price falls had undergone 17 consecutive quarters of yearly price rises, preceded by another 18 consecutive quarters of yearly price falls.

These cyclical macro trends have led to the price of D&O insurance standing just 6% higher than when the index began in 2001.

Aon also reported that some 40% of primary policies renewing with the same limit and deductible experienced a price decrease, while 46% saw no change and the remaining 14% saw an increase in price.

Policy renewals

Very little movement was seen among policyholders, with 96% of primary policies being renewed with the same carrier. Furthermore, 96% of policies were renewed with the same limit and 83% with the same limit and deductible.

These levels of shopping-around have fluctuated in recent years, as Aon explained: “Concurrently with the primary layer rate increases that started in the second quarter of 2018, the percentage of clients renewing with both the same limit and deductible had been dropping steadily.

“After bottoming out [at 50%] in the third quarter of 2020, that percentage has returned to more historical levels.

“For the second quarter of 2023, 83% of clients renewed with the same limit and deductible as the prior-year quarter.”