Geography Trends Q4 Latin America

Chile

Market Dynamics

Q4 Automobile Summary

Overall (Challenging)

Multiple related, converging factors are causing loss ratios to increase and insurance market conditions to become more challenging: rising exchange rates are driving up new car prices and auto repair costs, a shortage of car parts continues, and car thefts continue to increase.

Pricing (+1-10%)

Pricing has increased due to a convergence of factors related to costs, risks, and losses.

Capacity (Abundant) Auto capacity and appetite remains strong as this product dominates the portfolio of many insurers.

Underwriting (Rigorous) Underwriting is rigorous, time-consuming and rigid, with restrictions imposed for coverage in some cities, as well as for theft coverage generally.

Limits (Flat) Expiring limits can be achieved in most cases.

Deductibles (Increasing) Deductible increases are being imposed for poor performing coverages such as Robbery and Terrorism; other policy deductibles remain stable.

Coverages (Stable) Expiring coverages can be achieved in most cases.

A Look Ahead (Challenging) Current market conditions are expected to continue at least until the car parts shortage abates.

Q4 Cyber Summary

Overall (Challenging)

Market conditions continue to harden, with significant price increases, further capacity contraction, and narrowing insurer appetite.

Pricing (+11-30%)

Rates are up materially, driven by increased risk complexity, growing volatility, and escalating losses.

Capacity (Constrained) Insurers are withdrawing completely from this space or significantly reducing their available capacity.

Underwriting (Rigorous) Robust, quality information is critical to receiving a quote. Underwriters are rigorous, conservative and rigid. The process can be slow so starting early is important.

Limits (Decreasing) As risk has grown – particularly during pandemic-induced restrictions which significantly increased on-line activities – insurers have continued to reduce their limits offered.

Deductibles (Increasing) Deductible increases are being mandated with minimal option to negotiate in most cases.

Coverages (Restricting) Insurers are introducing heighted risk control requirements such as multi-factor authentication, and mandating subjectivities if the requirements cannot be satisfied.

A Look Ahead (Challenging) Current market conditions are expected to continue.

Q4 Employers Liability/Workers Compensation Summary

Overall (Moderate)

Market conditions are stable, with an abundance of competition, flat pricing and a disciplined but flexible underwriting environment.

Pricing (Flat)

While rate increases are often proposed, they can generally be reduced through negotiations for well-performing risks.

Capacity (Ample) Capacity is sufficient to meet the current demand.

Underwriting (Prudent) Underwriting is disciplined, but underwriters are demonstrating some flexibility.

Limits (Flat) Expiring limits can be achieved in most cases.

Deductibles (Flat) Expiring deductibles can be achieved in most cases, with the key exception of poor performing risks.

Coverages (Stable) Expiring coverages can be achieved in most cases.

A Look Ahead (Moderate) Current market conditions are expected to continue.

Q4 Trade Credit Summary

Overall (Moderate)

Market conditions are moderate overall. As losses did not materialize as expected, there has been a modest improvement.

Pricing (Flat)

Given that price adjustments were applied to recent past renewals, in Q4, most placements (with the exception of those which had not renewed during the pandemic period) renewed at expiring pricing levels.

Capacity (Ample) Capacity is sufficient in most cases.

Underwriting (Prudent) Underwriter cautiousness and conservatism has tempered somewhat, and appetite has slightly expanded.

Limits (Flat) While expiring limits can be achieved in most cases, there is continued conservatism in limits deployment.

Deductibles (Flat) Deductibles apply primarily to poor performing risks. In these cases, expiring deductibles can be achieved in most cases.

Coverages (Stable) Expiring coverages can be achieved in most cases.

A Look Ahead (Moderate) Current market conditions are expected to continue.

Q4 Casualty/Liability Summary

Overall (Moderate)

Market conditions are moderate. Appetite remains healthy. Capacity is sufficient. Underwriting rigor continues. Market pricing is modestly up.

Pricing (+1-10%)

Price increases are modest and, in some cases, stem more from growing exposures (as the economy continues to rebound) than rate escalation.

Capacity (Ample) For most risks, there is a deep market in terms of available insurers and capacity.

Underwriting (Rigorous) Underwriting is rigorous, with extensive information required, and guidelines are stringently applied.

Limits (Flat) Expiring limits can be achieved in most cases.

Deductibles (Flat) Percentage of loss and fixed amount deductibles remain stable and expiring deductibles can be achieved in most cases.

Coverages (Stable) Healthy competition is leading to favorable coverage terms and conditions.

A Look Ahead (Moderate) Current market conditions are expected to continue; however, the Chilean elections and evolution of COVID may have an impact.

Q4 Directors and Officers Summary

Overall (Challenging)

Market conditions remain challenging, with continued price increases, constrained capacity, limited appetite, and rigorous, closely monitored underwriting.

Pricing (>+30%)

Price increases remain the norm, but have decelerated from recent past years.

Capacity (Constrained) Capacity is constrained, driven primarily by poor performance in this space.

Underwriting (Rigorous) Underwriting is rigorous, stringent, and carefully monitored by insurers’ home offices.

Limits (Flat) Expiring limits can be achieved in most cases; however, poor performing risks may experience reductions.

Deductibles (Increasing) In response to a growing number of Side C losses, insurers have implemented deductible increases for most placements.

Coverages (Restricting) Coverage terms and conditions are tightening, driven primarily by more rigorous and stringent underwriting.

A Look Ahead (Challenging) Current market conditions are expected to continue.

Q4 Property Summary

Overall (Challenging)

Market conditions remain challenging. Pricing is up, capacity is constrained, and extensive negotiations are required to achieve the best available renewal outcomes.

Pricing (+1-10%)

As a result of poor portfolio performance and capacity constraints, price increases are the norm; however, flat renewal pricing can be achieved for some well-performing risks.

Capacity (Constrained) Appetite is focused and capacity is constrained.

Underwriting (Rigorous) Underwriting is rigorous and there is a strong demand for information related to safety and security measures, particularly related to fire risks. New guidelines have been introduced for the underwriting of risks with combustible panels.

Limits (Flat) Expiring limits can be achieved in most cases.

Deductibles (Flat) Expiring deductibles can be achieved in most cases.

Coverages (Stable) Coverage restrictions are generally limited to those imposed by reinsurance clauses.

A Look Ahead (Challenging) Current market conditions are expected to continue.

Colombia Market Dynamics

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