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Digital report

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.