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Global Insurance Market Update

Latin America and Caribbean Pricing Q4 2022

Insurance pricing in the fourth quarter in the Latin America and Caribbean (LAC) region increased 7%, compared to 5% in each of the prior two quarters.

31/01/2023

Casualty pricing increases for third consecutive quarter

Insurance pricing in the fourth quarter in the Latin America and Caribbean (LAC) region increased 7%, compared to 5% in each of the prior two quarters.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 6%, compared to 5% in the previous quarter; it was the seventeenth consecutive quarter of increase.

  • Pricing increases up to 10% continued across the region when facultative capacity was required, with the highest rise in catastrophe (CAT) exposed areas.
  • Property CAT is a concern across the region.
    • Insurers exhibited strict underwriting discipline and asked for more and better information.
  • Reductions in capacity in Brazil continued, with select industries and complex risks putting upward pressure on pricing.
  • Strike, riot, and civil commotion (SRCC) and sabotage and terrorism (S&T) continued to be challenging due to the region’s political uncertainty.

Casualty insurance pricing increased 8%, compared to 6% in the prior quarter.

  • Pricing increased across the region, particularly in Brazil, Colombia, and Chile.
  • Larger organisations generally experienced higher increases and limited capacity compared to smaller ones.
  • Insurers were selective in deploying capacity for product liability exposures in the US and Canada, as well as for energy, chemicals, fertilizers, and other high-risk exposures.

Financial and professional lines pricing rose 8%, compared to 6% in the prior quarter, marking the third consecutive quarter of single-digit increases.

  • D&O and FIs saw new capacity enter the market, as well as an openness by insurers to reviewing exposed risks, competitive rates, and increased appetite.
  • Insurers generally looked to grow their professional indemnity business, and typically were open to reviewing risks and offering competitive terms and conditions.
    • For single project professional indemnity (SPPI), insurers continued to demonstrate a conservative approach.

Cyber insurance pricing increased 33% in the fourth quarter, a lower rate of increase than had been seen for several quarters.

  • Competitive terms and moderating rate increases signalled a greater willingness from insurers to underwrite cyber coverage.
  • Industries that faced significant rate increases included financial institutions, manufacturing, and technology.

Global Insurance Market Index – 2022 Q4

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Panorama of Chicago

Global Insurance Market Index

US Pricing

Insurance pricing in the fourth quarter of 2022 in the US increased by 3%, compared to 5% in the prior quarter.
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Global Insurance Market Index

UK Pricing

Insurance pricing in the UK increased 4% in the fourth quarter, compared to 7% in the third quarter.
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Global Insurance Market Index

Continental Europe Pricing

Insurance pricing in the fourth quarter in Continental Europe (CE) increased 6%, the same rate of increase as in the prior three quarters.
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Global Insurance Market Index

Pacific Pricing

Insurance pricing in the Pacific region increased 5% in the fourth quarter, the same as in the prior quarter.
beautiful nanpu bridge at dusk,crosses huangpu river,shanghai,China

Global Insurance Market Index

Asia Pricing

Insurance pricing in the fourth quarter in Asia increased 2%, the same as in in the prior quarter.