Geography Trends Q2 Latin America

Chile

Market Dynamics

Q2 Automobile Summary

Overall (Challenging)

Driven by exchange rate challenges, poor insurer portfolio performance and rising inflation, market conditions have become challenging, especially related to robbery and terrorism. Rates have increased, capacity has become constrained, and underwriters have become more selective.

Pricing (+11-30%)

Rate increases have continued to climb due to a convergence of factors related to costs, risks and losses.

Capacity (Constrained) Capacity has decreased materially and was constrained in Q2.

Underwriting (Rigorous) Underwriters became more selective in Q2, showing strong preference toward best-in-class risks. The process was rigorous and time-consuming, with restrictions imposed for coverage in some cities, as well as for theft coverage generally.

Limits (Decreased) Limit decreases were imposed in many cases.

Deductibles (Increased) Deductible increases were imposed in many cases.

Coverages (More Restrictive) Coverage restrictions were imposed, particularly with regard to robbery and terrorism cover.

A Look Ahead (Challenging) Current challenging market conditions are expected to continue, driven by exchange rates, poor portfolio performance and rising inflation.

Q2 Cyber Summary

Overall (Challenging)

Market conditions remained challenging in Q2, with significant rate increases, constrained capacity, the introduction and/or reduction of sub-limits, and limited insurer appetite.

Pricing (>30%)

Driven by continued loss frequency and severity, significant rate increases continued.

Capacity (Constrained) As insurers continued to experience material claims impacts, they further reduced their capacity, which became constrained across the market at large.

Underwriting (Rigorous) Underwriting remained rigorous and stringent. Extensive underwriting details were required.

Limits (Decreased) Limit decreases were mandated and sub-limits were introduced and/or reduced as insurers sought to manage their exposure.

Deductibles (Increased) Deductible increases were mandated as insurers sought to manage their exposure.

Coverages (More Restrictive) Restrictions (particularly related to ransomware) have continued to be imposed.

A Look Ahead (Challenging) Market conditions are expected to remain challenging while insurers will continue to innovate to address new and evolving threat types.

Q2 Trade Credit Summary

Overall (Challenging)

Market conditions were moderately challenging, with any improvements offered by insurers often requiring a "trade-off" of terms and conditions or pricing. Insurers could be aggressive in quoting for their preferred risk types. Exposures (turnover) have generally shown very conservative growth projections.

Pricing (+1-10%)

Pricing increased, and insurers pointed to political concerns related to the new Constitution in Chile (despite reassurance from Global Risk Assessors) and the effects of geopolitical events in Eastern Europe as the reasons for increases.

Capacity (Ample) Capacity differed widely by sector, as each insurer's appetite and capacity was generally targeted to specific sectors.

Underwriting (Rigorous) Underwriting rigor remained strong. Any coverage extension came at the expense of a restriction of coverage elsewhere in the policy.

Limits (Flat) Expiring limits were achieved in most cases, and increases have become more challenging to secure.

Deductibles (Flat) Expiring deductibles were achieved in most cases, regardless of form (threshold, coinsurance, etc.). Reductions have been available in some limited cases.

Coverages (Stable) As insurers looked to manage their exposures, some coverage restrictions were imposed. However, some insurers considered coverage buy-backs.

A Look Ahead (Challenging) Insurer conservatism is expected to continue, driven by domestic as well as global concerns.

Q2 Casualty/Liability Summary

Overall (Moderate)

Moderate market conditions continued; however, some higher risk industries such as automotive, pharmaceuticals and rail, as well as risks with US exposure/activities, experienced more challenging conditions.

Pricing (+1-10%)

Well performing, small and mid-sized risks experienced flat to slightly decreased rates while larger risks, and poor performing risks of any size, experienced rate increases.

Capacity (Ample) Capacity was sufficient for most risks.

Underwriting (Prudent) Underwriting was conservative, driven by insurer focus on profitability and audit controls.

Limits (Flat) Expiring limits were achieved in most cases.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Stable) Expiring coverages were achieved.

A Look Ahead (Moderate) Insurers are expected to remain interested in growth, but primarily focused on preferred, well-performing risks.

Q2 Directors and Officers Summary

Overall (Moderate)

Moderate market conditions continued. Local insurer appetite was healthy for favorable risks, especially new business, as insurers sought to differentiate from the reinsurance market through more favorable terms.

Pricing (+1-10%)

Modest price increases continued in Q2, following more substantial rises seen in the previous two years.

Capacity (Ample) Insurer appetite was healthy, and capacity remained sufficient in Q2.

Underwriting (Prudent) Underwriting has been cautious but not overly conservative. Flexibility was demonstrated for some well-performing risk types.

Limits (Flat) Expiring limits were achieved in most cases.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Stable) Expiring coverages were achieved in most cases; however, reinsurers have added exclusions related to Silent Cyber coverage.

A Look Ahead (Moderate) Moderate market conditions are expected to continue as local insurer appetite remains healthy, especially for well-performing new business, and insurers continue to seek to differentiate themselves.

Q2 Property Summary

Overall (Challenging)

Market conditions became more challenging due to further capacity reductions. Engineering reports and compliance with risk control recommendations remained a key topic of discussion with underwriters.

Pricing (Flat)

Moderate and well-performing risks continued to experience flat renewal pricing, while hazardous risks or risks with insufficient fire protection measures experienced rate increases.

Capacity (Constrained) Capacity remained constrained, as some insurers reserved capacity for July renewals. Capacity for combustible panel construction types was particularly limited.

Underwriting (Prudent) Underwriting caution continued, with a focus on engineering.

Limits (Flat) Expiring limits were achieved in most cases. Reductions were imposed on some poorly-performing risks.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Stable) Expiring coverages were achieved in most cases.

A Look Ahead (Moderate) Market conditions may moderate slightly following the July renewals.

Colombia Market Dynamics

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