Financial and professional lines rates continue to decline
Financial and professional lines rates declined 7%.
- Insurer appetite remained strong.
- Underwriter concerns included macroeconomic issues such as challenges in the banking sector, supply chain delays, the interest rate environment, labor shortages, and the sociopolitical situation in various Latin American countries.
- Financial institutions (FIs) generally experienced low claims frequency and increased capacity — favorable conditions for rate reductions.
- Many insureds increased limits in their casualty programs.
Cyber rates decline as controls improve
Cyber insurance rates declined 5%.
- Rate reductions in the region were affected by such factors as organizations improving internal controls and increased reinsurance capacity.
- Clients with controls and risk management policies perceived as effective typically experienced discounts or flat renewals.
- International insurers generally increased their appetite.
- Some clients obtained rate improvements; others focused on enhancing conditions or increasing policy limits.