Q3 2024
Latin America and Caribbean rates increase
Insurance rates in the third quarter of 2024 in the LAC region increased 3%.
Latin America and Caribbean third quarter 2024
1022168931
Latin America and Caribbean composite insurance rate change
Latin America and Caribbean property
Property insurance rates increase on climate-related catastrophes
Property insurance rates increased by 3%, the 24th consecutive quarter of increase.
- Rates generally increased in Mexico, Colombia, and Brazil and decreased in Chile and Peru, on average.
- The market remained challenging for natural catastrophe (Nat Cat) exposed organisations.
- Brazil continued to be affected by the aftermath of major weather events in Rio Grande do Sul.
- Some insurers put limits on flood coverage in susceptible territories.
- In Mexico, increases in the 10% range were experienced due to the ongoing impact of Hurricane Otis.
- Rate decreases on London layers were typically capped at a maximum of 10% for primary layers.
- Some smaller clients generally received flat renewals, depending on loss experience and exposure.
- Rates in Argentina, which has no Nat Cat exposure, were stable.
Latin America and Caribbean casualty
Casualty rates increase, auto liability a key factor
Casualty insurance rates increased by 5%, the tenth consecutive quarter of increase.
- The casualty market experienced strong insurer competition for smaller risks.
- Competition and capacity increased with the entry of new insurers in the market.
- Deductibles for auto clients deemed high risk by insurers generally increased, and third-party liability renewals were typically flat or with slight increases.
- The increased cost of labour, parts, and values, due in part to increased sales of electric vehicles, contributed to rate increases.
- Clients with low auto loss ratios began to experience rate decreases.
- The availability of spare parts and new vehicles contributed to a reduction in vehicle values and thus premiums.
- Flooding in Rio Grande do Sul, Brazil, in April and May continued to drive increased rates in the auto liability market.
Latin America and Caribbean financial and professional lines
Financial and professional lines rates continue to decline
Financial and professional lines rates declined 8%.
- The management liability market remained competitive, with significant capacity.
- Offers backed by facultative reinsurance influenced the conditions for this line of business.
- Many clients increased limits and/or adjusted their coverage.
- Rates for errors and omissions (E&O) coverage trended stable.
- Medical malpractice coverage began to experience increased rates.
Cyber rates decline as controls improve
Cyber insurance rates declined 5%.
- In Colombia and Puerto Rico, where local market capacity and access to US- and London-based insurers tends to be greater, rate reductions ranged between 5% and 10%.
- In countries where capacity from local insurers remained limited, rate decreases were less pronounced and remained flat at renewal in some cases.
Our rates reflect the segment mix of Marsh’s client portfolio.
