Latin America and Caribbean Insurance Market Rates

Property insurance rates decrease

Property insurance rates declined 4%, driven by heightened competition.

• Rates declined 10% to 15% in Chile; Colombia saw similar trends for some medium-sized risks; Brazil experienced significant declines; and rates in Peru declined 5% to 10%.
• Underwriting caution remained for high-hazard accounts and those with poor loss records.
• Strikes, riots, and civil commotion (SRCC) insurance experienced rate reductions of up to 40%, driven by competitive pressures from the international market. Reductions were particularly significant in Chile, which influenced insurer pricing strategies across the region.

Casualty rates increase for 12th consecutive quarter

Casualty insurance rates increased by 2%, the twelfth consecutive quarter of increase.

• The composite increase was influenced by rising automobile rates in Mexico and general liability rates in Argentina, Brazil, and Puerto Rico.
• Local markets in many countries outside of Mexico, Argentina, Brazil, and Puerto Rico were significantly more competitive than international markets and offered ample capacity.
• Rate decreases of 5% to 10% were common for claims-free policies, especially in general third-party liability coverage.
• The auto insurance sector was increasingly competitive, offering discounts for low- and medium-loss ratio accounts, while high-loss accounts faced scrutiny.

Financial and professional lines rates decline

Financial and professional lines rates declined 6%, marking the sixth consecutive quarter of decline amid competition in regional and global markets.

• The directors and officers (D&O) liability market remained highly competitive. Renewals benefitted from increased capacity and competitive pricing, which facilitated negotiations on limits and coverages.
• Insurers were cautious about granting substantial rate reductions for perceived high-risk exposures, however continued to offer attractive rates to retain clients amid evolving market dynamics.

Cyber rates decline, limit increases common

Cyber insurance rates declined 6%.

• The largest reductions were observed in Mexico, Brazil, and Colombia, where rates fell between 8% and 10%.
• In markets like Peru, Chile, and Argentina, pricing reductions were generally lower.
• Insurers offered attractive rates, leading clients to increase coverage limits. Reductions of 30% to 45% were noted for buyers with exceptional cybersecurity controls.
• Major insurers were actively underwriting more risks, contributing to favorable renewal conditions and enhancing overall market capacity.
• Cyber renewals typically saw broader terms and the removal of ransomware-related restrictions.

Our rates reflect the segment mix of Marsh’s client portfolio.