Latin America and Caribbean Pricing: Property Insurance Drives Increase
Insurance pricing in the fourth quarter in the Latin America and Caribbean (LAC) region increased 4%. Casualty pricing in the region was again the only decrease seen in a major product line globally.
Constant bar chart represents Global Insurance Composite Pricing Change.
Property insurance pricing increased 7%, up from 2% in the previous quarter.
The rate of pricing increase for property insurance was unchanged from the third quarter in Brazil and Colombia; in the rest of the region it increased in the 5% to 10% range.
Clients experienced price increases throughout the region when facultative capacity was required.
Casualty insurance pricing declined 3%, the seventh consecutive quarter of decrease.
Local capacity and competition continued to mitigate casualty pricing.
Large, complex programs continued to experience small increases across the region, especially when there was a need for facultative capacity.
Financial and professional lines pricing rose 12%, down from the 17% increase in the third quarter.
In Colombia, uncertainty regarding the Office of Comptroller General’s interpretation of the fiscal exposure of state-owned companies has led to capacity constraints and a significant increase in premiums.
On average, cyber prices increased 40%; although some clients experienced increases exceeding 400%.
Over 80% of clients across all industries experienced an increase in cyber premiums in 2021.
Although challenging, it is important to carefully manage the underwriting information now required to place cyber risk coverage.