Insurance as a Strategic Enabler for Growth in Mexico

Q: Mexico continues to have one of the lowest insurance penetration rates among OECD countries. What are the main barriers hindering greater adoption of insurance products?

A: Beyond macroeconomic factors related to purchasing power, one of the main causes of low insurance penetration in Mexico is the lack of a culture of prevention. We often think about protecting ourselves only after we experience a loss firsthand and understand the real impact it can have on our assets and peace of mind. The real challenge begins with changing that mindset. Those of us in the sector have a responsibility to help people understand the value of insurance and make it simpler and more approachable.

Q: What structural changes are needed to close the protection gap in Mexico and expand access to insurance among individuals, families, and businesses?

A: Expanding access requires working on multiple fronts, starting with a better understanding of individuals and businesses to offer solutions that truly respond to their needs. Technology can also help us simplify processes and become more efficient, making protection significantly more accessible. On the other hand, we need to strengthen coordination between insurers, regulatory authorities, and other industry stakeholders. By joining forces, we can make it easier for more people to incorporate insurance into their planning.

Q: How can insurers contribute to improving financial inclusion without compromising sustainability and profitability?

A: Insurance plays a key role in risk management, and one of its main contributions is helping mitigate the financial damage caused by unforeseen events. In many cases, that management also involves reducing effects, even if it is not always possible to eliminate them entirely. That capacity to adapt to different needs allows insurance to make a major contribution to financial inclusion.  

The starting point to leveraging that capability lies in offering solutions that generate real value for individuals and businesses. For insurers, this means delivering useful and functional protection, high-quality service, and building trust-based relationships that can endure over time. When people understand the value of their insurance and find the support they need in it, it creates the conditions required to expand protection and sustain responsible growth.

Q: What role does a robust insurance ecosystem play in enhancing competitiveness and attracting investment?

A: A country’s competitiveness also depends on its ability to manage the risks that accompany its growth. When an investor evaluates where to establish an operation, they consider how protected that investment will be against unexpected events and what backing they will have to ensure project continuity. A strong insurance sector forms part of the framework that generates that confidence. By safeguarding investments and ensuring project continuity, insurance fulfills a vital role in economic development and contributes to building a more competitive, attractive investment climate.

Q: How critical is insurance for enabling large-scale industrial, infrastructure, and logistics projects associated with the nearshoring opportunity in Mexico?

A: Insurance must be present right from the planning stage of these types of projects. When investments are larger and operations more complex, the need to anticipate risks and establish an appropriate protection strategy increases accordingly. That backing helps maintain operational continuity, provides greater confidence to develop long-term projects, and allows businesses to capitalize on growth opportunities responsibly.

Q: Historically, insurance has been perceived as a post-loss compensation mechanism. How is the industry evolving toward prevention, resilience, and business continuity?

A: For a long time, the role of insurance was primarily focused on responding after a loss occurred. But its value also lies in helping companies better understand the risks they face, prepare before they happen, and even anticipate them to mitigate consequences, which often extend far beyond the economic impact. This evolution has also transformed our relationship with clients, opening up more space for advisory services and guidance, where intermediaries play a fundamental role. Their proximity to clients, combined with the expertise of insurers, allows us to provide more comprehensive and continuous orientation.

Q: SMEs represent the backbone of the Mexican economy, yet many remain underinsured. Why does this protection gap persist?

A: SMEs face the daily challenge of keeping their operations running while continuing to grow. Amid those priorities, it is common for protection not to advance at the same pace as the business, and over time, coverage can cease to reflect their reality. This does not necessarily mean there is a lack of interest in being protected. We have a great opportunity as a sector to better accompany them and help them maintain coverage that evolves alongside their business.

Q: What are the most common risk management mistakes you observe among growing companies operating in Mexico today?

A: There is still a tendency to think about protection only after something has already happened. It is a cultural pattern seen across various fields and represents an opportunity to incorporate prevention more naturally into our decision-making. For growing businesses, this also means reviewing their protection as the business changes. What worked at one stage may no longer be sufficient when operations transform or new needs emerge.

Q: How can insurers work more closely with SMEs to strengthen their long-term resilience and sustainability?

A: The starting point is recognizing that every SME operates in a different reality. To work closer with them, we need to understand their operations, listen to their needs, and comprehend the changes they are navigating. That closeness must also be maintained over time. Ongoing dialogue allows us to assess whether protection continues to mirror the reality of the business and help them prepare for the challenges that arise with growth. This is where the professional insurance advisor becomes essential.

Q: How well prepared is Mexico for the increasing rate of hurricanes, floods, droughts, and other extreme weather events?

A: The insurance industry in Mexico possesses the necessary experience and financial solidity to respond to high-impact climate events. Hurricane Otis was a clear demonstration of this, with over US$2 billion paid out in claims. The challenge lies in the fact that protection still does not reach all families and businesses exposed to these types of risks, meaning a significant portion of the losses continues to fall directly on them. That is why we must keep promoting prevention and ensure that insurance becomes part of their planning before an event occurs.

Q: What are the most significant climate vulnerabilities for businesses and communities in Mexico?

A: The most critical vulnerabilities arise when high exposure to climate events coincides with a lower capacity to cope with their consequences. In Mexico, that reality manifests differently depending on the region. 

Hydrometeorological risks represent one of the country's primary exposures, surpassing even seismic risk. Hurricanes hit coastal areas hardest, droughts are becoming increasingly frequent in the north, and urban flooding remains a persistent challenge for many cities. The impact is not uniform either. A company might see its operations or supply chain disrupted, whereas for a family, a storm can mean losing a major part of their life assets. This diversity reminds us that each region requires a tailored perspective and preparation suited to its specific risks.

Q: How can insurers help organizations anticipate and mitigate risks before losses occur?

A: Insurers possess extensive expertise on how risks evolve and the impact they can have. Part of that knowledge is built from historical data collected over decades, which today allows us to generate actionable insights so companies can better understand their exposure and make decisions further in advance. Our responsibility is to continue developing solutions aligned with an increasingly complex climate reality and to accompany our clients right from the planning phase. Prevention is the foundation and ranges from practical actions — such as inspecting facilities, establishing fire protocols, or defining evacuation routes — to leveraging advanced tools like sensors, telematics, and predictive modeling. The true value lies in translating experience and data into decisions that enable organizations to be better prepared.

Q: The recently announced alliance between HDI and Afirme represents one of the most significant developments in Mexico's insurance sector. What does this transaction reveal about the future of insurance distribution?

A: For HDI Seguros, as part of the Talanx Group, this alliance reflects our vision of how insurance distribution should be complemented. Protection needs to integrate more naturally into people's lives through simpler, more accessible solutions aligned with how they interact with other institutions and services. Insurance agents continue to play a pivotal role and remain the primary channel for premium generation in the market. The opportunity lies in complementing their work with new collaborative models that allow us to bring insurance closer to more people and expand protection options for those who already have an established relationship with our partners.

Q: How are customer expectations evolving as financial services, insurance, and digital platforms become increasingly interconnected?

A: Customer expectations have shifted based on their experiences with other service sectors. They now look for simpler processes, faster response times, clearer experiences, and service tailored to their specific needs. Hence the importance of leveraging technology to enhance every interaction, without losing the personal touch we maintain with the customer. When making a decision as important as protecting one's assets, digital experience and personal guidance must advance hand in hand.

Q: HDI Mexico is undergoing a leadership transition during a pivotal period of transformation for both the company and the broader industry. What strategic priorities will define this new chapter?

A: This new stage builds upon the strong foundation of a company that has grown thanks to teamwork and the trust of our commercial partners. The top priority will be nurturing those relationships and continuously strengthening the service we deliver. The arrival of Jorge Moreno as the Director General will be instrumental in maintaining continuity in this effort. His leadership will be invaluable as he guides the company in the coming years and pushes forward projects like our commercial alliance with Afirme, which will allow us to expand our reach and make protection more accessible to more people. 

With the solid groundwork we have built, the talent of our team, and the trust of our partners, HDI Seguros is fully prepared to keep growing and responding to the ongoing shifts in the industry.

Q: What trends are expected to have the greatest impact on the Mexican insurance market over the next decade?

A: The next decade will be defined by changes that are already beginning to take shape and will exert a growing influence on the industry. AI will be one of the most significant trends, as it will transform how we assess risks, process claims, make decisions, and interact with customers. We will also see major transformations in mobility with increasingly autonomous vehicles, as well as heightened digitalization across daily life and business operations. Added to this are emerging risks that will continue to gain prominence, such as cyber risks, supply chain disruptions, and challenges surrounding the energy transition. The primary challenge for the industry will be understanding these shifts and developing solutions that continue to meet the evolving needs of individuals and enterprises.

Q: Finally, what developments would indicate that Mexico has transformed into a more resilient, competitive, and better-protected economy?

A: A more resilient economy will be one where businesses, from major corporations to SMEs, naturally integrate risk management into their day-to-day operations. A state where a catastrophic event, a cyberattack, or a supply chain failure does not spell the end of a business, but rather a scenario that could be navigated because a strategic protection framework was already in place. It will also be a sign of true progress when more individuals, families, and businesses possess solutions that allow them to safeguard what they have built. Reaching that point will require a shared commitment from everyone in the sector to make protection simpler, more accessible, and closely aligned with people's lives.