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Global Insurance Market Update

Latin America and Caribbean Pricing Q3 2022

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 5%, the same as in the prior quarter
Cityscape, Cartagena de Indias, Colombia.

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

Constant bar chart represents Global Insurance Composite Pricing Change.

Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022-5%0%5%10%15%20%Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022Global Insurance Composite Pricing ChangeLatin America Casualty Insurance Renewal Rate

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.

Global Insurance Market Index – 2022 Q3