Global Insurance Market Update

Latin America and Caribbean Pricing Q1 2022

Insurance pricing in the first quarter in the Latin America and Caribbean (LAC) region increased 6%.

Cityscape, Cartagena de Indias, Colombia.

Appetite for D&O lines increases

Insurance pricing in the first quarter in the Latin America and Caribbean (LAC) region increased 6%. Casualty pricing in the region was flat, marking a potential shift from decreasing rates in the space.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 8%, up from 7% in the previous quarter.

  • Clients experienced price increases throughout the region in instances where facultative reinsurance capacity was required.
  • Brazil experienced significant increases in property pricing, with average increases of 10%, driven by a lack of capacity for heavy industries.
  • In Mexico, capacity restriction due to reinsurance treaty renewals drove some early direct market pricing challenging for some clients.

Casualty insurance pricing was flat in the first quarter of 2022, ending several consecutive quarters of decrease.

  • Local capacity and competition continued to mitigate casualty pricing.
  • Large, complex programs and high-capacity limits continued to experience modest increases across the region, especially when there was a need for facultative reinsurance capacity.
  • In Brazil, increasing claims ratios may affect the market in the short term.

Financial and professional lines pricing rose 11%, down slightly from the 12% increase in the prior quarter.

  • Insurers demonstrated a notable increase in appetite in both D&O and crime markets.
  • The professional indemnity (PI) market reflected less appetite than other lines and insurers are reviewing risks on a case-by-case basis.
  • Cyber prices increased 30% to 40%, in line with the prior quarter.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”