Latin America Pricing Q3 2021 |Global Insurance Market Index

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.

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