Latin America and Caribbean Insurance Market Rates

Property insurance rates increase for 22nd consecutive quarter

Property insurance rates increased 4%.

• Capacity was low in Mexico, contributing to increased rates in the wake of Hurricane Otis, particularly for complex risks and those with catastrophe exposure.
• Colombia's property market experienced an increase in capacity and interest in underwriting high-quality risks, resulting in flat renewals and some rate decreases, albeit with continued underwriting scrutiny.
• Sabotage and terrorism (S&T)  and strikes, riots, and civil commotion (SRCC), capacity remained limited locally.
  • There was increased interest from international markets in these areas. 

Casualty rate increases continue

Casualty insurance rates rose 8%.

• Increased local competition and the emergence of competitive facultative capacity contributed to rate moderation.
• In some regions, renewals generally experienced flat rates or slight increases; however, some experienced increases.
• Auto liability rates moderated with a decrease in the frequency of damage claims, but with higher rates observed for theft coverage.

Financial and professional rates decline

Financial and professional lines rates fell by 4%.

• Insurer appetite increased.
• Insureds found opportunities to enhance coverage, increase limits, and explore new alternatives and insurance structures.

Cyber rates decline, insureds seek program improvements

Cyber insurance rates decreased 3%. 

• Underwriters continued to consider the quality of cybersecurity controls and risk management policies.
• Variations across countries remained due in large part to differing claims experiences. In certain markets, such as Mexico and Peru, some clients experienced increases in the 10% range.
• Improved market conditions led some companies to seek broader coverage and higher limits.
• It is an opportune time for clients to seek broader coverage and contemplate higher limits, as both are now more affordable.