Mexico continues to be attractive for investors in the insurtech industry, which refers to digital insurance platforms, both national and foreign, as confirmed by Carlos Manuel Ortega, Insurance and Health director at NTT DATA México, who also added that there could be a slight slowdown by 2025.
During a press conference, he pointed out that there are challenges at a global level that could impact investment in Mexico, however, he said that the country has been resilient in the face of the attacks.
“They are impacting ecosystems, and it is impacting investments in insurtech,” commented Manuel Ortega.
The specialist mentioned that in 2021 the peak of investment in Mexico in the aforementioned industry was achieved, despite the decline that has accumulated for two consecutive years and in the midst of a turbulent economic, political and social scenario, industry experts “see this as an opportunity” for a new wave of innovation.
He added that Mexico in 2021 reached an investment of 15 million dollars, which was distributed in eight “large investment contracts.” “Now we see fewer investment contracts,” he said.
However, he considered that investments are currently not being made to grow the industry, but rather in focused points such as innovation; In fact, he said that in January 2024 they detected 124 insurtech startups and that 70% of these are of Mexican origin, while the rest come from the foreign market, which sees Mexico as a country with growth potential.
“Mexico represents a degree of attractiveness for national and foreign investments, especially from insurance companies,” he said.
According to information from NTT Data, in the last six years, the insurtech industry has gone through different periods, specifically speaking about the evolution of the ecosystem.
For example, he noted that between 2018 and 2023, it was classified as a “promising” time frame for the industry, especially for “disruptive topics” such as usage-based insurance, genomics, telematics and smart homes.
“The rise of the Covid-19 pandemic, marked by the IPO of the main Insurtechs, highlighted the relevance of health and life insurance,” the company detailed in a study.
The company also highlighted that companies are registering an investment adjustment due to the explosion of technologies such as Generative AI, which has enhanced the industry’s ability to combat emerging risks such as climate change, cybersecurity or mental health, evidencing the maturation of the sector, which seeks sustainability and long-term profitability.
In this way, between 2021 and 2023, integrated insurance, employee benefits and cyber risks led the financing of the Insurtech sector, while healthcare emerged as the line of business with the fastest growth compared to 2018 and 2023. 2020.
“Now insurtech companies are looking for innovation,” commented the expert.
For Carlos Manuel Ortega, Insurance and Health Director at NTT DATA Mexico, the Latin American insurance segment is facing an “unprecedented” opportunity: on the one hand, he explained that the region has at its disposal the power of emerging technologies to gain competitiveness in the global scenario and drive the business into the future and, on the other, because it can capitalize on the digital revolution that is transforming the sector to generate products, services and business models that anticipate the changing needs of consumers.
“These two combined forces open the doors to a panorama full of opportunities for the growth and evolution of the insurance sector in Latin America,” concluded the executive.
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