Regional update
Latin America and the Caribbean (LAC)
Construction market overview
Elevated interest rates but easing inflation and improved supply conditions were observed in the construction market in Latin America entering 2026. Performance diverged by country in Q1 2026: Brazil remained anchored by infrastructure and social housing; Mexico benefited from nearshoring-driven residential and logistics demand amid volatile public works; and construction in Argentina was subdued but is positioned for recovery following macroeconomic stabilization.
Many countries in the region are scheduled to hold presidential and congressional elections in 2026, which may impact investment decisions.
Insurance landscape
Insurance interest in the construction sector remained strong across the region, underpinned by solid technical results, and strong market. Certain risks — such as mining and oil and gas — required referrals from insurer headquarters or centralized subscription and capacity. Overall, rates continued to decrease.
Construction all risks/ Builder’s risk
The regional insurance market remained competitive, with capacity in insurance and reinsurance.
Professional indemnity
The professional indemnity market remained active, driven notably by strong submission volumes from Brazil and Peru. Insurers continued to focus predominantly on single-project placements, showing limited appetite for annual programs. Pricing remained stable, with limited discounting and deductible levels generally unchanged. There was growing insurer willingness to negotiate broader coverage extensions and to accommodate evolving client requirements in the region.
Casualty
The casualty market remained competitive, supported by ample capacity. Most insurers provided third-party liability coverage within their capacity limits, though typically at lower coverage limits. Reinsurers demonstrated strong appetite for excess layers on complex risks. Standard restrictions persisted for high-exposure activities, such as underground and wet works.