According to the Global Insurance Market Index, conducted by Marsh Specialty and Global Placement, Commercial insurance prices rose 8% in Latin America in the second quarter of the year, at the same pace as the previous three months.
The increase was greater than the world average, where global insurance rose only 3% in the same period. Multi-line insurance prices have shown an upward trend for the 23rd quarter in a row, This is almost six years in a row.
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The index results revealed that prices were consistent across regions. Rate decreases were recorded for financial lines and professionals and some moderate increases for cyber insurance.
The property branch was the insurance line with the greatest increase worldwide, the increases in property prices Cyber insurance moderated 1%, compared to 11% in the previous quarter. In property insurance, there was an increase of 10%, accident insurance 3%, financial lines insurance, a decrease of 8%.
Latin America and the Caribbean
In general, in the second quarter in Latin America and the Caribbean recorded growth of 8%, the same as in the previous quarter.
Property insurance prices increased 7%, compared to 8% in the previous three months; It was the 19th quarter followed by increase.
According to Marsh, “insurers generally deployed less capacity, reduced limits and higher prices to companies in territories exposed to CAT and with poor loss records. Coverage for strikes, riots and civil commotion (Srcc) and sabotage and terrorism (S&T) varied across the region.”
In turn, he stressed that in Colombia there is a complex situation, which leads to a reduction in capacity and significant increases in rates. Accident insurance prices increased 12% in the second quarter, the fifth consecutive quarter of increase.
According to Fasecolda, “the fundamental reason for these increases is due to the high inflation that makes the inputs for the payment of compensation more expensive, increasing the cost of claims.”
“Important factors that increase the price of premiums are the CPI, consumer price index, which today exceeds 10% in annual terms, the Tax Reform also impacts all sectors of the country’s economy, including the insurance sector.”commented Wilson Triana, banking and insurance expert.
Automotive liabilities experienced the largest increases across the region, particularly in Mexico, driven by claims, inflation and labor costs. QFor general liability, including workers’ compensation, prices remained stable with many policyholders experiencing price increases of up to 5% in all territoriesexcluding accounts with exposure to the US.
Cyber insurance prices increased 12% in the second quarter. Insurers have enhanced coverage offerings to address emerging cyber risks, including ransomware attacks and data breaches.
2023-11-01 05:03:31
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