Latin America and Caribbean Pricing Q2 2022

Casualty pricing increases for first time in two years

Insurance pricing in the second quarter in the Latin America and Caribbean (LAC) region increased 5%, a decline from 6% in the prior quarter.

Property insurance pricing increased 5%, compared to an 8% rise in the previous quarter.

• Pricing increases continued across the region when facultative capacity was needed, particularly for countries with CAT exposures.
• In Brazil, local conditions were challenging, following many years of softer market conditions compared to international markets.
• Market uncertainty increased across the region regarding political risk.
• Insurers remained disciplined and cautious regarding capacity deployment.

Casualty insurance pricing rates increased 4% in the second quarter, the first average increase since the first quarter of 2020.

• There was sufficient capacity for low limit, non-complex programs.
• Pricing generally stabilized for large, complex programs with high limits and exposures.
• In Brazil, markets showed increasing concern for long tail exposures and rising claims.
• In Colombia, local capacity was sufficient and rates were stable.

Financial and professional lines pricing rose 6%, down from an 11% increase in the prior quarter, driven by cyber pricing.

• For FIs and D&O coverage, the market was transitioning, with new capacity entering the region.
• Local market underwriting appetite remained conservative.
• Cyber insurance experienced increases above 30%.
  • Restrictions on coverage included higher retentions, ransomware coinsurance, and sub-limits in first-party coverage.