The Latin American (LatAm) insurtech market will continue to recover and mature in 2025, with the number of active companies reaching 536 and investment volume reaching $199 million, according to findings from the 11th edition of Mapfre’s “Latin America Insurtech Journey” report.
Investment surged 117% year-on-year, making it the third strongest year on record, behind only 2022 and 2021, which are widely considered investment boom years in Latin America.
Growth is increasingly driven by stronger, more scalable business models. The report said an 8% drop in mortality, coupled with the continued emergence of start-ups, indicates a healthier ecosystem capable of sustaining long-term innovation.
The industry has undergone a major shift in the past four years: 48% of start-ups have closed, while 330 new companies have been founded. This shift resulted in Brazil’s regional share falling from 33% to 28%.
Geographically, Brazil, Mexico and Chile remain the dominant markets. However, the trend of startups expanding overseas is driving continued growth in cross-border growth.
One of the most significant changes in the ecosystem is the shift from simple distribution to technical support, which currently accounts for 51% of the market share.
Hugues Bertin, CEO and founder of Digital Insurance LatAm, said: “The ecosystem has changed dramatically in just four years. Today we see higher quality companies, more AI-driven models and more insurtech companies solving real industry problems. The focus has shifted from pure distribution to technology enablement, which is reshaping the market.”
Carlos Cendra, Head of Corporate Innovation Scouting and Investments at Mapfre, commented: “2025 exceeded expectations. Strong investment coupled with ecosystem attrition suggests the market is maturing. The growing role of ‘multi-Latin’ insurtechs operating across multiple markets will be key to building more resilient, scalable companies.”
