Insurance pricing in the first quarter in the Latin America and Caribbean (LAC) region increased 6%. Casualty pricing in the region was flat, marking a potential shift from decreasing rates in the space.
Constant bar chart represents Global Insurance Composite Pricing Change.
Property insurance pricingincreased 8%, up from 7% in the previous quarter.
Clients experienced price increases throughout the region in instances where facultative reinsurance capacity was required.
Brazil experienced significant increases in property pricing, with average increases of 10%, driven by a lack of capacity for heavy industries.
In Mexico, capacity restriction due to reinsurance treaty renewals drove some early direct market pricing challenging for some clients.
Casualty insurance pricing was flat in the first quarter of 2022, ending several consecutive quarters of decrease.
Local capacity and competition continued to mitigate casualty pricing.
Large, complex programs and high-capacity limits continued to experience modest increases across the region, especially when there was a need for facultative reinsurance capacity.
In Brazil, increasing claims ratios may affect the market in the short term.
Financial and professional lines pricingrose 11%, down slightly from the 12% increase in the prior quarter.
Insurers demonstrated a notable increase in appetite in both D&O and crime markets.
The professional indemnity (PI) market reflected less appetite than other lines and insurers are reviewing risks on a case-by-case basis.
Cyber prices increased 30% to 40%, in line with the prior quarter.