MAPFRE: Insurtech Investment in LatAm Surges to US$121m

Latin American insurtech companies secured US$121m in funding during the first half of 2025, marking a 370% increase from the same period in 2024, according to the tenth edition of the "Latam Insurtech Journey" report compiled by Digital Insurance LATAM with MAPFRE sponsorship. 

The figure represents 32% more than the total financing raised throughout 2024.

Brazil dominated the investment landscape, attracting US$89m or 74% of total funding while maintaining 203 insurtech companies. Mexico follows with 129 companies and Argentina hosts 95 insurtech firms.

Chile recorded the highest percentage increase at 29%, positioning it as a regional growth engine driven by low mortality rates.

The regional ecosystem now comprises 507 insurtech companies, reflecting 2% growth. The sector recorded a 9.4% mortality rate alongside 11% organic growth, resulting in 56 new insurtech launches over the past 12 months.

Investment flows concentrated in life and care segments, which captured 65% of funding, while mobility accounted for 33%.

Carlos Cendra, Scouting and Investment Lead for Corporate Innovation at MAPFRE, says: “This start of the year has yielded very positive data for the Latin American insurtech ecosystem. 

“In general, all countries or regions continue to grow or strengthen. In fact, in terms of funding, the pre-pandemic investment level was reached during the first half of the year alone.”

Business model evolution reshapes sector

The regional insurtech landscape has undergone structural changes over four years. Distribution-focused models previously represented 60% of the ecosystem but now split evenly with enabler companies at 50% each. The enabler segment continues expanding.

Most distributor companies concentrate on personal motor and home insurance lines, with broker and Managing General Agent models representing 41% of distribution activity. 

Among enablers, artificial intelligence agents and fraud detection solutions have emerged as rapidly expanding categories, though traditional intermediation digitalisation remains the primary focus at 15%.

Brazil and Chile improved mortality rates to 9% and 3% respectively over the past year. Mexico and Colombia both recorded 10% mortality rates while Argentina achieved 7%. 

The current ecosystem mortality rate stands at 9.4%, with recent quarters indicating stabilisation around 10% annually.

Cross-border expansion accelerates across region

Internationalisation rates reached 18.3% during the first half of 2025, representing 36% growth. The metric tracks companies operating across multiple countries within the region.

Peru leads internationalisation efforts with 58% of companies expanding beyond domestic markets. Chile follows at 31% while Colombia records 26%. 

Brazil now hosts 10% of international insurtech companies, marking a shift for a traditionally domestic-focused market.

Foreign company attraction increased to 32% from 24% in the first half of 2024. Colombia attracts 66% foreign insurtech companies, followed by Peru at 53% and Mexico at 42%. 

Regional associations support Latin American insurtech expansion throughout connected markets, facilitating cross-border operations as companies pursue multi-country strategies.

Sector specialisation drives investment patterns

The mobility ecosystem encompasses 200 insurtech companies, representing 39% of the total sector. Distribution activities account for 65% within mobility, while enablers comprise 35%.
Over the past decade, mobility has attracted 35% of cumulative investment, rising to 44% through 2025 and reaching US$474m total.

Life and care segments include 141 companies or 28% of the regional total. These firms operate across life insurance, health, wellness and aging sectors. 

Distribution maintains a central role at 60% of activity, with enablers representing 40%. The segment has captured 55% of ten-year cumulative investment, totalling US$75m.

The transformation reflects broader industry shifts as traditional insurers and brokers collaborate with technology companies. 

Insurer executives across the region actively promote partnerships with insurtech firms to enhance operational efficiency and customer experience, while increasing insurance penetration.

Hugues Bertin, CEO and Founder of Digital Insurance Latam, says internationalisation indicates "good ecosystem health, since the probability of a single-country insurtech disappearing is three times higher."

Bertin adds: “In just five years, the insurtech ecosystem in Latin America has become a fundamental axis of the transformation of insurers and large brokers. 

“Co-building the protection of the future through technology is no longer a monopoly of insurtechs: the entire ecosystem is organizing collaboratively with a common purpose.”