Global Insurance Market Index

Latin America Pricing Q3 2021

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 2%. As has been the case for several quarters, casualty pricing in the region was the only decrease seen in a major product line globally.

Latin America and Caribbean: Increases Slow, Casualty Decreases

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 2%. As has been the case for several quarters, casualty pricing in the region was the only decrease seen in a major product line globally.

Latin America Insurance Pricing - Q3 2021

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 2%.

  • Pricing increased in Brazil, moderated in Chile and Colombia, and decreased moderately in Mexico, especially for CAT risks.
  • There remained a price mismatch between the facultative market and local capacity, but the difference is lower than in previous quarters.
  • Pricing in Chile decreased for strikes, riots, and civil commotion (SRCC) coverage from selected property programs.
  • In Brazil, clients with high hazard exposed risks or with poor claims record experienced increases of more than 25%.

Casualty insurance prices declined 3%, the only regional decrease in a major coverage line globally.

  • Local capacity and competition mitigated casualty pricing, with abundant capacity in Chile, Brazil, and Colombia.

Financial and professional lines pricing rose 17%.

  • Insurer capacity and appetite declined, particularly for FI, public D&O, high risk industries, and distressed companies where the international market provides a large portion of capacity.
  • D&O deductibles (side B and C) generally increased between 30% and 50%, depending on the business and financial rating of the regional insured.
  • Cyber insurance pricing increased 30% to 45% across industries, with some clients experiencing premium increases above 200%.
    • More than 60% of clients experienced a premium increase during 2021.
    • Some insurers have scaled back to a maximum of USD5 million in limits on primary layers and a maximum of USD10 million on excess layers.
  • Regional economic and political situations continued to create uncertainty, including the impact of COVID-19, slow reactivation of economies, change in the Peruvian government, and upcoming elections in Colombia and Chile.

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.”