Q1 2024
Latin America and Caribbean rates increase
Insurance rates in the first quarter of 2024 in the Latin America and Caribbean (LAC) region increased 5%.
Latin America and Caribbean first quarter 2024
Latin America and Caribbean composite insurance rate change
Latin America and Caribbean property
Property insurance rates increase for 22nd consecutive quarter
Property insurance rates increased 4%.
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Capacity was low in Mexico, contributing to increased rates in the wake of Hurricane Otis, particularly for complex risks and those with catastrophe exposure.
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Colombia's property market experienced an increase in capacity and interest in underwriting high-quality risks, resulting in flat renewals and some rate decreases, albeit with continued underwriting scrutiny.
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Sabotage and terrorism (S&T) and strikes, riots, and civil commotion (SRCC), capacity remained limited locally.
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There was increased interest from international markets in these areas.
Latin America and Caribbean casualty
Casualty rate increases continue
Casualty insurance rates rose 8%.
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Increased local competition and the emergence of competitive facultative capacity contributed to rate moderation.
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In some regions, renewals generally experienced flat rates or slight increases; however, some experienced increases.
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Auto liability rates moderated with a decrease in the frequency of damage claims, but with higher rates observed for theft coverage.
Latin America and Caribbean financial and professional lines
Financial and professional rates decline
Financial and professional lines rates fell by 4%.
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Insurer appetite increased.
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Insureds found opportunities to enhance coverage, increase limits, and explore new alternatives and insurance structures.
Cyber rates decline, insureds seek program improvements
Cyber insurance rates decreased 3%.
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Underwriters continued to consider the quality of cybersecurity controls and risk management policies.
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Variations across countries remained due in large part to differing claims experiences. In certain markets, such as Mexico and Peru, some clients experienced increases in the 10% range.
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Improved market conditions led some companies to seek broader coverage and higher limits.
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It is an opportune time for clients to seek broader coverage and contemplate higher limits, as both are now more affordable.