12 Global insurance markets: Financial and professional lines pricing declines 09| Latin America composite insurance pricing change — by major coverage line Casualty insurance pricing increased 6% in the third quarter, compared to 4% in the prior quarter. • The two consecutive quarters of increase were the 16% 昀椀rst since the beginning of 2020. 15% • Non-complex programs and those with low limits 14% 10% experienced signs of increasing pricing and 9% 9% 7% 8% limited capacity. y 6% 6% 5% 5% • The local insurance market is beginning to re昀氀ect t r 2% pricing in the facultative and international markets. e 0% 0% 0% 0% p o Financial and professional lines pricing rose 6%, the r C P same as in the prior quarter. A L • Regional and local market underwriting appetite remained conservative. 4% 4% 6% • The overall trend was for moderation in the pace of y 3% price increases for 昀椀nancial and professional lines. lt 2% 2% 2% a 1% 1% • New local and international capacity allowed for u 0% s relatively easier placement for risks with high limits. Ca C -2% Cyber insurance continued to present challenges A L -3% -3% in pricing. -4% -4% -4% -5% • Appetite and capacity from international markets 26% increased for regional cyber risks — mostly 22% 22% excess capacity. 17% 17% 17% 15% 15% 12% 11% 7% 8% O 6% 6% R 2% 2% P 1% N I C F A L Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Source: Marsh Specialty and Global Placement