Latin America and Caribbean Insurance Market Rates

Property insurance rates decrease

Property insurance rates declined 7%, driven by heightened competition.

• Rates generally declined across the region, including by 15% to 20% in Peru, characterized by increased competition and greater capacity.
• New insurers entered the Mexican market, enhancing capacity and competition.
• Local companies in Peru and Colombia remained cautious regarding complex risks and high loss ratios.
• In Mexico and Peru, there was increased insurer emphasis on risk quality and asset valuation, and a focus by underwriters on strikes, riots, and civil commotion (SRCC), and sabotage and terrorism (S&T) coverages due to political and social uncertainties.
• Rates in Chile continued to decline.
• Colombia maintained moderate capacity.

Casualty rates decrease for first time in over three years

Casualty insurance rates decreased by 1%.

• Declining rate trends were experienced across the region.
• There were high levels of competition in Colombia and Mexico, with many renewals completed at flat rates or decreases, particularly for companies with low and medium claims frequency.
• Automobile liability insurance saw generally attractive rates and increased insurer interest in previously unquoted businesses, although insurers remained cautious with high claims frequency clients, particularly in Peru.

Financial and professional lines rates decline

Financial and professional lines rates declined 8%, marking the seventh consecutive quarter of decline amid strong competition in regional and global markets.

• The directors and officers (D&O) liability market remained competitive, with significant interest from insurers contributing to ongoing declines.
• Insurers remained cautious about providing substantial rate reductions for higher-risk exposures.

Cyber rates decline

Cyber insurance rates declined 17%, with high levels of insurer competition.

• Cyber rates declined more than 10% in all countries in the region, with some insureds in Colombia and Mexico experiencing 30% reductions.
• Deductible reductions were common, influenced by the international reinsurance market and creating opportunities for clients to consider higher limits.

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