Casualty pricing increases for first time in two years
Insurance pricing in the second quarter in the Latin America and Caribbean (LAC) region increased 5%, a decline from 6% in the prior quarter.
Property insurance pricing increased 5%, compared to an 8% rise in the previous quarter.
- Pricing increases continued across the region when facultative capacity was needed, particularly for countries with CAT exposures.
- In Brazil, local conditions were challenging, following many years of softer market conditions compared to international markets.
- Market uncertainty increased across the region regarding political risk.
- Insurers remained disciplined and cautious regarding capacity deployment.
Casualty insurance pricing rates increased 4% in the second quarter, the first average increase since the first quarter of 2020.
- There was sufficient capacity for low limit, non-complex programs.
- Pricing generally stabilised for large, complex programs with high limits and exposures.
- In Brazil, markets showed increasing concern for long tail exposures and rising claims.
- In Colombia, local capacity was sufficient and rates were stable.
Financial and professional lines pricing rose 6%, down from an 11% increase in the prior quarter, driven by cyber pricing.
- For FIs and D&O coverage, the market was transitioning, with new capacity entering the region.
- Local market underwriting appetite remained conservative.
- Cyber insurance experienced increases above 30%.
- Restrictions on coverage included higher retentions, ransomware coinsurance, and sub-limits in first-party coverage.
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Asia Pricing
Insurance pricing in the second quarter of 2022 in Asia increased 3%, the same as in the prior quarter.
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