Global Insurance Market Index

Latin America Pricing Q3 2021

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 2%. As has been the case for several quarters, casualty pricing in the region was the only decrease seen in a major product line globally.

Latin America and Caribbean: Increases Slow, Casualty Decreases

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 2%. As has been the case for several quarters, casualty pricing in the region was the only decrease seen in a major product line globally.

Latin America Insurance Pricing - Q3 2021

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 2%.

  • Pricing increased in Brazil, moderated in Chile and Colombia, and decreased moderately in Mexico, especially for CAT risks.
  • There remained a price mismatch between the facultative market and local capacity, but the difference is lower than in previous quarters.
  • Pricing in Chile decreased for strikes, riots, and civil commotion (SRCC) coverage from selected property programs.
  • In Brazil, clients with high hazard exposed risks or with poor claims record experienced increases of more than 25%.

Casualty insurance prices declined 3%, the only regional decrease in a major coverage line globally.

  • Local capacity and competition mitigated casualty pricing, with abundant capacity in Chile, Brazil, and Colombia.

Financial and professional lines pricing rose 17%.

  • Insurer capacity and appetite declined, particularly for FI, public D&O, high risk industries, and distressed companies where the international market provides a large portion of capacity.
  • D&O deductibles (side B and C) generally increased between 30% and 50%, depending on the business and financial rating of the regional insured.
  • Cyber insurance pricing increased 30% to 45% across industries, with some clients experiencing premium increases above 200%.
    • More than 60% of clients experienced a premium increase during 2021.
    • Some insurers have scaled back to a maximum of USD5 million in limits on primary layers and a maximum of USD10 million on excess layers.
  • Regional economic and political situations continued to create uncertainty, including the impact of COVID-19, slow reactivation of economies, change in the Peruvian government, and upcoming elections in Colombia and Chile.