Q4 Automobile Summary
Overall (Moderate)
Insurers are aggressively competing for business, leading to favorable market pricing, especially in the SME segment. Insurers - focused on technical and operational results – are using Auto coverage for fleets as a pathway to writing other products.
Pricing (Down)
The market is robust, with many insurers, which is driving healthy competition and favorable pricing.
Capacity (Ample) Local insurers are able to provide capacity for most risks.
Underwriting (Prudent) While underwriting approaches remain cautious, underwriters are demonstrating more flexibility as the rules of the market continue to evolve.
Limits (Increasing) Limits are increasing, mostly as a result of inflation.
Deductibles (Increasing) Deductibles are increasing, mostly as a result of inflation.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Moderate) A continued focus on growth is expected, especially in the SME market. Tiered payment options and profit sharing may become more prevalent.
Q4 Cyber Summary
Overall (Moderate)
The Cyber market is developing in Argentina with very few insurers and limited, but growing, demand for coverage.
Pricing (>+30%)
There is significant rate pressure across-the-board.
Capacity (Ample) Capacity is limited but sufficient for the current demand.
Underwriting (Prudent) Underwriters are cautiously approaching this product as it evolves in the Argentina market. Most underwriting is conducted by central teams (not locally).
Limits (Flat) Most placements are renewing with expiring limits.
Deductibles (Increasing) Deductible increases are being mandated as a result of adverse claims experience.
Coverages (Restricting) Coverage clarifications and exclusions, particularly related to Ransomware, are being imposed.
A Look Ahead (Challenging) The market is expected to continue to mature as demand for Cyber coverage increases.
Q4 Employers Liability/Workers Compensation Summary
Overall (Moderate)
Market conditions are moderate. While pricing is generally soft, underwriters are cautious following recent loss activity.
Pricing (Down)
Insurer pricing approaches vary widely. While some insurers are seeking modest rate increases, others – particularly in the mid-market space - are focused on growth and pricing aggressively.
Capacity (Abundant) Capacity is abundant with many insurers offering coverage in this space.
Underwriting (Prudent) Technical underwriting results, especially related to COVID-19, have come under pressure. As a result, some insurers have become more cautious and less flexible.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Expiring deductibles can be achieved in most cases.
Coverages (Stable) Coverages are dictated by law and as such have remained stable. COVID-19 coverage; however, is available only for some risk types.
A Look Ahead (Moderate) Market conditions are expected to remain stable.
Q4 Trade Credit Summary
Overall (Challenging)
The Argentina economy is enduring a slow pandemic recovery, including working through the complexities of settling debt payments with the IMF. This slow recovery and debt settlement process has led Trade Credit insurers to reduce capacity, raise pricing, and implement more rigorous underwriting.
Pricing (+1-10%)
Credit insurance pricing is being revaluated and rate increases are being imposed.
Capacity (Constrained) Capacity has contracted and most risks are achieving less than full subscription.
Underwriting (Rigorous) Underwriting is rigorous and extensive information is being required. Underwriters are minimally interested in qualitative risk and exposure summaries, focusing instead on data and quantitative information.
Limits (Decreasing) Insureds with a lack of financial information – or with sufficient financial information that demonstrates a deteriorated financial position – have experienced mandatory decreases in limits.
Coverages (Restricting) Coverages are tightening, especially for risks suffering poor financial performance.
A Look Ahead (Challenging) Argentina's economic growth is expected to be in the low single digits, dependent on the IMF settlement. As a result, the current, challenging market conditions are expected to continue into 2022.
Q4 Casualty/Liability Summary
Overall (Challenging)
The market has become challenging as insurer underwriting practices have become more stringent and rigorous and appetite has become more focused.
Pricing (+1-10%)
Modest price increases are common but may be higher based on risk / activity type.
Capacity (Constrained) Capacity has become constrained as insurers have shifted their appetite. While capacity remains sufficient for well-performing risk types, it is more challenged for the rest of the market.
Underwriting (Rigorous) Underwriting has become more stringent and rigorous as insurer underwriting policies and practices have shifted.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Expiring deductibles can be achieved in most cases.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Challenging) Current market trends are expected to continue – with stringent and rigorous underwriting practices coupled with modest price increases.
Q4 Directors and Officers Summary
Overall (Challenging)
Market conditions are challenging, with price increases, capacity contraction, and limited insurer appetite.
Pricing (+1-10%)
Risks with local exposure are experiencing modest price increases while those with NYSE exposure are experiencing more significant increases.
Capacity (Constrained) Capacity is sufficient for targeted risk types; however, other risks, including large tower placements, are experiencing material capacity constraints.
Underwriting (Prudent) A continued challenging claims environment has led to more rigorous and stringent underwriting.
Limits (Flat) Despite rising premiums, most insureds are not electing to reduce their limits. Expiring limits can be achieved for most risks.
Deductibles (Flat) Expiring deductibles can be achieved for most risks with the key exception of risks with NYSE exposures, which have experienced significant increases.
Coverages (Stable) Expiring coverage can be achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue, with significant price increases for more exposed risk types such as banks and public companies and modest increases for other risk types.
Q4 Property Summary
Overall (Challenging)
Market conditions have become more challenging following changes in the reinsurance contracts of some insurers as a result of poor performance. The market is now experiencing restrictions in capacity, rate increases, deductible increases and less underwriting flexibility.
Pricing (+1-10%)
Rates are increasing modestly. Rising reinsurance costs have led some insurers to withdraw from risks, while other insurers have passed the increased costs through to insureds.
Capacity (Constrained) Some insurers have suffered significant changes to their reinsurance contracts, leading them to withdraw from some risk types, or reduce capacity.
Underwriting (Rigorous) Poor performance and high loss ratios have resulted in changes to insurer underwriting practices. Underwriting is more rigorous, with extensive information requirements.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Increasing) Deductibles are increasing, driven by three factors: changes in reinsurance contracts, poor claims performance as a result of high accident rates, and lower risk quality as a result of a reduction in investment in safety/security measures.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Challenging) Current market conditions are expected to continue until the next reinsurance renewal in mid-2022.
Brazil Market Dynamics
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