The Latin American insurtech sector closes 2024 with more than 500 insurtechs in an adverse context

Insurtech financing in Latin America reached 92 million dollars in 2024, 38% less than 2023. However, during the second half of the year there was a rebound of 156% compared to the first half of 2024, which indicates positive prospects for 2025 and the existence of investor interest in the region.

Despite this context of low investment in the annual calculation of investment in venture capital or risk capital, the total number of startups in the insurtech ecosystem in the region is 502, which translates into 5% growth in 2024. Given that the mortality rate was 9.4%, organic growth stands at +15% per year, with 70 new insurtechs.

These insights stem from the ‘Latam Insurtech Journey’ report, compiled by Digital Insurance LATAM and sponsored by MAPFRE. The ninth edition of this document analyzes the state of the insurtech industry in Latin America.

The ecosystem continues to grow despite a lack of investment

If we break down the total existing startups in the region, Brazil (206), Mexico (120), and Argentina (88) are the territories with the highest number of agents, while the Pacific region has the highest percentage growth, with Peru (+26%), Chile and Ecuador (+21% each) and Colombia (+18%).

In 2024, international expansion grew by 23%, with a total internationalization index of 15.9%, i.e., multilatina startups operating in more than one country.  Peru (50%) and Chile (32%) are driving this expansion due to their business scalability needs, while Brazil exports very few insurtechs (<1%) due to its unique market dynamics.

The attraction index of foreign insurtechs sits at 29%, which means that three out of ten insurtechs in a single market are foreign. The three main attraction poles are Mexico (36%), Peru (64%), and Colombia (51%).

Peru (64%), Ecuador (51%), and Colombia (48%) attract the most foreign insurtech companies in Latin America.

“The continued growth of both indices (internationalization and attraction) highlights two key trends: insurtechs with a strong value proposition expand quickly, and both ‘out of Latam’ companies and multilatina startups view Latin America as one large, unified market,” said Hugues Bertín, CEO of Digital Insurance LatAm and Chairman of the AIP (Pan-American Insurtech Alliance).

The mortality of insurtech startups continues to decline

The annual mortality rate of the ecosystem stands at 9.4% (vs. 12.7% in 2023).

Insurtech startups that cannot be escalated to other countries are in a vulnerable situation. The mortality of multilatina startups is three times lower than local insurtechs.

In 2024, Brazil managed to improve its mortality rate, reducing it from 12% to 7%. Mexico recorded the highest mortality rate, with 12%. Argentina and Colombia show improvements, with mortality rates of 9% and 8%, respectively, in the last year.

Enablers and distributors are balanced

Some 51% of insurtechs focus on distribution, This figure represents an 8% decline compared to 2020. While distribution remains the dominant sector, the ecosystem’s interest is shifting toward other business models, creating a more balanced landscape.

The majority of distribution-focused insurtechs are concentrated in personal lines for auto and home insurance, operating under Broker or MGA models. Combined, these two models account for 39%. Neoinsurers represent 9% of all distribution and are particularly important in Mexico and Brazil.

Enablers have seen an 8-percentage-point increase over the past four years, now making up 49% of the total within the Latin American insurtech ecosystem.

Notably, 16% of enablers offer solutions for digitalizing traditional intermediation. Additionally, 14% specialize in claims management solutions, and 5% focus on fraud detection.

Statements:

Hugues Bertin, CEO and founder of Digital Insurance Latam, commented that “this year has been a year of resilience and learning. In particular, there is a strong correlation between the growth in the number of insurtechs in a country, their international expansion, and the presence of robust insurtech associations that collaborate with the traditional sector. In other words, in a context of lack of financing, companies become more robust, cooperation links with the traditional sector intensify, and internationalization processes accelerate. Here, associations play a key role in the development of the ecosystem.”

Carlos Cendra, Scouting & Investment Lead at MAPFRE Open Innovation, noted that “the upturn in financing in the second half of 2024, together with the continuous growth in the number of startups, reveals the strength of the ecosystem and the region, firmly convinced of the potential of the insurance industry. We have started 2025 with new funding round announcements, such as those of Sami and Olé Life, suggesting a positive trend in this year’s figures. However, we must remain attentive to the global venture capital landscape and how potential fluctuations could impact Latin America.”