Mexico’s Insurance Sector Targets Growth Through Tech

Mexico’s insurance market is expanding steadily, with gross written premiums projected to reach US$32.7 billion by 2029, up from an estimated US$28.8 billion in 2025, according to Statista. In 2024 alone, premiums totaled US$41.6 billion, reflecting a 16.4% increase in peso terms. Despite this growth, insurance penetration remains low at around 2.5% of GDP, leaving significant room for expansion. 

"Our mission is to impress and captivate the client," said Mauricio Torres, Deputy Director General, Interesse. The company’s approach emphasizes that technology should serve the client, not the other way around. Among its innovations, Interesse plans to launch "Inés," an AI-powered virtual assistant designed to handle 80% of routine client inquiries. 

By automating questions about policy details or claim forms, human staff can focus on the remaining 20%—complex cases requiring specialized consultation. "We are committed to not depersonalizing the service," Torres said, noting that the AI’s natural language processing creates a conversational, human-like interaction.

Interesse is also using predictive analytics and AI to detect fraudulent claims, analyze client data for risk management, and provide critical business intelligence. As Joaquín Barreiro, COO, explained, these tools can reduce claims rates by identifying risky behaviors and routes, for example, in a client’s transport business.

The company’s digital strategy aims to create a cohesive ecosystem connecting the insured, the decision-maker (HR or risk manager), and brokers in a seamless flow of information. For end users, mobile apps consolidate all policies, regardless of carrier, and offer on-demand coverage, such as for ride-share drivers who need temporary protection.

For corporate clients, real-time business intelligence tools track insured vehicles, employee turnover, and emerging risks, turning insurance from a passive expense into a strategic asset.

The sector’s distribution network includes over 50,000 individual agents and 675 corporate brokers as of late 2024, generating more than 30% of commissions from health insurance and 25% from motor policies. Digital adoption and insurtech are accelerating, with the Mexican insurtech market valued at US$123.6 million in 2024 and projected to grow at a 30.3% CAGR  through 2033, according to Global Data.

For Interesse, 1Q25 saw a nearly 12% increase in new policies compared to 1Q24, with growth across life (+42%), health (+19%), and auto (+21%). "It is a solid sector that continues to grow," Torres stated.

However, the industry faces challenges, including a limited insurance culture and economic constraints. Torres emphasized that insurers must do more to educate the public and simplify purchasing.

Hurricane Otis, Mexico’s costliest on record, caused US$12–16 billion in damage, yet only 10–12% of small businesses in Acapulco were insured, leaving most reliant on insufficient government aid. Recovery in lower-income neighborhoods has been slow, with residents often lacking access to private coverage.

In response, Mexico has leaned on catastrophe bonds to protect public finances. Since pioneering sovereign CAT bonds in 2006, the country has secured up to US$485 million in coverage for earthquakes and storms by 2020. In 2024, Mexico issued a US$175 million CAT bond, bringing total World Bank–supported coverage to US$595 million, enhancing federal resilience against Pacific hurricanes.

“As a broker, we see our role as a key ally for businesses, helping them navigate this complex landscape and mitigate risks,” said Barreiro.