Latin America and Caribbean Pricing Q3 2022

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

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.