Global Insurance Market Update

Latin America and Caribbean Pricing Q3 2022

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 5%, the same as in the prior quarter

Cityscape, Cartagena de Indias, Colombia.

Casualty pricing increases for second consecutive quarter

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 5%, the same as in the prior quarter

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 5%, the same as in the previous quarter and the sixteenth consecutive quarter of increase.

  • Price increases continued across the region when facultative capacity was required, which is becoming common, particularly for countries with catastrophe (CAT) exposure.
  • There were pockets of more challenging conditions across the region, with concern in Brazil that few markets would accept complex risks as insurers focused on year-end results.
  • There was limited regional capacity for strikes, riots, and civil commotion (SRCC) and sabotage and terrorism (S&T) coverage, mainly due to political uncertainty in Chile and Mexico.

Casualty insurance pricing increased 6% in the third quarter, compared to 4% in the prior quarter.

  • The two consecutive quarters of increase were the first since the beginning of 2020.
  • Non-complex programs and those with low limits experienced signs of increasing pricing and limited capacity.
  • The local insurance market is beginning to reflect pricing in the facultative and international markets.

Financial and professional lines pricing rose 6%, the same as in the prior quarter.

  • Regional and local market underwriting appetite remained conservative.
  • The overall trend was for moderation in the pace of price increases for financial and professional lines.
  • New local and international capacity allowed for relatively easier placement for risks with high limits.

Cyber insurance continued to present challenges in pricing.

  • Appetite and capacity from international markets increased for regional cyber risks — mostly excess capacity.

Global Insurance Market Index – 2022 Q3