Today, I’d like to share with you a comprehensive view of the P&C market in Latin America, as well as the strategies we’re implementing from Placement to drive efficiencies and deliver better solutions for our clients.
The P&C market in the region is experiencing a period of greater competition, driven by the growth of traditional insurers and reinsurers seeking to consolidate their operations in Latin America.
This dynamic is generating significant price reductions in a context where insurable risks remain largely the same, adjusting only for inflation.
In addition, the definition of catastrophic risk has expanded.
Today, events such as severe thunderstorms, wildfires, and frost are being included within this category.
Recent events like the wildfires in Chile, the floods in Rio Grande do Sul (Brazil), and hurricanes in the Gulf of Mexico have caused multimillion-dollar losses, which are beginning to put pressure on underwriting processes.
In this scenario, many insureds are anticipating their renewals to secure greater savings and are choosing insurance programs with terms longer than 12 months, seeking more competitive costs in the long run.
When it comes to pricing:
In Property, we’re seeing reductions between -15% and -5% for risks with good loss experience and low catastrophic exposure, and between -10% and stable in other cases.
In Casualty, rates are also trending downward, between -10% and stable.
This competitive environment is being fueled by the increased capacity in both insurance and reinsurance markets, along with larger budgets in a context of modest economic growth.
The current environment also favors the review of coverage levels and deductibles that had been restricted during the hardest years of the market.
Coverages such as Strikes, Riots, and Civil Commotion (SRCC)—previously limited in reinsurance—are once again available.
Coverage for material damage caused by cyber incidents, which had virtually disappeared, is also being reintroduced, now through specific reinsurance arrangements.
Companies that increased their deductibles or retentions during the hard market can now reassess reductions, depending on their loss history.
Risk quality continues to be a key factor in accessing more competitive offers.
Global insurers and reinsurers have deployed more capital, expanding underwriting lines that had been restricted.
Although not many new players have entered the market, the strong presence of MGAs has increased available capacity, especially for large and complex risks.
However, limitations persist for industries considered aggravated—such as cold storage, plastics, textiles, sugar mills, and waste management in Property; and for products exported to the U.S. or Canada in Casualty.
Insurers are strengthening their local teams with specialized talent, granting greater autonomy and agility in decision-making.
For catastrophic risks, we’re seeing a greater deployment of traditional capacity, displacing the parametric market, which played a key role during the hard market but has lost relevance in recent months.
In response to this dynamic environment, we’re developing and executing a clear strategy: to implement and leverage global and regional facilities that allow us to generate efficiencies and find better options for our clients within the market.
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