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Latin America and Caribbean Insurance Market Pricing

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the LAC insurance market.

Q4 2023 

Latin America and Caribbean pricing: Financial and professional lines decline for first time in 26 quarters

Insurance rates in the fourth quarter of 2023 in the Latin America and Caribbean (LAC) region increased 8%. 

Latin America and Caribbean fourth quarter 2023

Latin America and Caribbean composite insurance rate change

Latin America and Caribbean Property

LAC property rates increase

Property insurance rates increased 6%. 

  • Facultative capacity is generally still required to reach desired limits and improve rates.
  • In Brazil, insurers reduced capacity for risks with high limits and poor loss records.
  • In Chile, increased insurer competition led to rate decreases in some areas, such as hotels, buildings, and universities.
  • In Mexico, insurers continued to evaluate rates for CAT exposures following the Category 5 hurricane that hit Acapulco in late October.

Latin America and Caribbean casualty

Casualty rates continue to rise

Casualty insurance rates rose 11%.

  • Motor liability increases were driven by inflation and an increase in accidents and theft.
  • Organizations that require facultative capacity or different placement structures also experienced a slight decrease in rates due to the participation of international insurers, new reinsurance capacities, and local competition.

Latin America and Caribbean financial and professional lines

Financial and professional rates decline

Financial and professional lines rates fell by 2%.

  • The decrease was due in part to heightened insurer competition over market share as well as new capacity entering the market. 

Cyber insurers interest in region grows

Cyber insurance rates increased 3%.

  • There is growing interest from reinsurers, particularly in the UK, to better understand the region. This enables improved negotiation of technical conditions and the possibility of higher limits. 
  • Most clients experienced rate increases; companies seen by insurers as having good cybersecurity controls and risk management policies typically experienced smaller ones. 

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the ‘Marsh Analysis’) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 24/031.