Latin America Insurance Rates Fell 9% in Q2 2026

Commercial insurance rates in Latin America and the Caribbean fell 9% in the second quarter of 2026, according to Marsh’s latest Global Insurance Market Index. The regional decline was steeper than the 6% drop recorded worldwide, extending a period of sustained price reductions across major commercial insurance lines.

The global market recorded its eighth consecutive quarterly decline in insurance rates. Marsh attributed the trend to abundant underwriting capacity, strong competition among insurers, lower reinsurance costs, excess capital, solid insurer profitability and higher investment returns.

Property Insurance Leads the Regional Decline

Property insurance recorded the sharpest reduction in Latin America and the Caribbean, with rates falling 14% during the quarter. Brazil and Chile posted the steepest decreases, as insurers competed aggressively for business amid ample local and international capacity.

Lower reinsurance costs also allowed insurers to deploy additional capacity and offer more competitive primary pricing. Buyers increasingly secured broader coverage, improved terms and longer-duration agreements, although accounts with adverse loss histories continued to face significantly different pricing and conditions.

Risks viewed by underwriters as having weaker protection standards remained subject to greater scrutiny. By contrast, insureds with favorable loss experience generally achieved the most substantial reductions, particularly where insurers had confidence in the quality of risk management.

Casualty and Professional Lines Also Become Cheaper

Casualty insurance rates in the region declined 2%, matching the previous quarter. Price reductions were significant across much of Latin America and the Caribbean as available capacity increased competitive pressure, although declines in Argentina and Colombia moderated and began to stabilize.

Financial and professional lines recorded a 5% decline, compared with a 6% reduction in the previous quarter. Directors and officers liability coverage showed some of the strongest improvements for buyers, while pricing for financial institutions remained mixed and errors and omissions coverage was generally stable.

Capacity remained stable or increased across the region, allowing some clients to purchase higher limits and expand their coverage. The combination of competitive pricing and greater capacity has given companies more room to reconsider the structure and scope of their insurance programs.

Cyber Insurance Rates Fall for the Tenth Consecutive Quarter

Cyber insurance rates declined 10% in Latin America and the Caribbean, marking the tenth consecutive quarter of reductions. Market capacity remained stable, while regional and London facultative markets continued to underwrite more risks and deploy additional capacity.

The resulting competition maintained downward pressure on cyber premiums. For businesses, the environment has created opportunities to negotiate broader protection or higher limits, particularly when their risk profiles and loss experience are viewed favorably by insurers.

LAC Decline Among the Largest Globally

The 9% regional decrease placed Latin America and the Caribbean among the markets with the largest reductions during the quarter. Insurance rates fell 16% in India, the Middle East and Africa, 13% in the Pacific, 8% in the United Kingdom, 7% in Canada, 6% in Europe and 5% in Asia. The United States recorded a 2% decline after falling 1% in the first quarter.

Globally, property rates fell 12%, while casualty rates increased 2%. Financial and professional lines declined 3%, and cyber insurance rates dropped 4%, according to Marsh’s global index.

For companies operating in Latin America and the Caribbean, the regional pricing environment is creating greater flexibility at renewal. Buyers can use the combination of insurer competition and available capacity to review limits, coverage terms and program structures rather than simply renewing existing arrangements.

Marsh said the current conditions are also allowing organizations to improve coverage and refine insurance programs. The broader trend will depend on whether the high level of capacity and competitive conditions persist across the commercial insurance market.