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Latin America and Caribbean Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the LAC insurance market.

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

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 organizations.
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 labor, 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.

Global Insurance Market Index

10/24/2024

The Global Insurance Market Index is our proprietary measure of global commercial insurance rate change at renewal - providing insights on the world's major insurance markets.

Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

10/24/2024

Insurance rates in the third quarter of 2024 in the US increased 3%.

Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

10/24/2024

Insurance rates in the UK declined 5% in the third quarter of 2024.

Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe were flat in the third quarter of 2024.

Beautiful aerial view of the Sydney Opera house by the bay in Australia. Panoramic view.

Global Insurance Market Index

Pacific insurance rates

Insurance rates in the Pacific region declined 6% in the third quarter of 2024.

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 4% in the third quarter of 2024.

Global Insurance Market Index

Canada insurance rates

Insurance rates in Canada declined 3% in the third quarter of 2024.

Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

10/24/2024

Insurance rates in the IMEA region decreased 2% in the third quarter of 2024.

Latin America and Caribbean Insurance Market Rates

Latin America and Caribbean rates increase