MEXICO Law and Practice Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
The company may be wholly or partially released from its obligations if subrogation is prevented by acts or omissions on the part of the insured.
and Bonding Commission has introduced various ini- tiatives to enhance the sector’s resilience and safe- guard policyholders against these challenges. Cyber-Risks The rise in cyber-attacks and vulnerabilities in digi- tal systems has significantly increased the exposure of businesses and individuals to financial and infor- mational losses. The National Insurance and Bond- ing Commission has encouraged the development of specific insurance products to cover cyber-risks, and has established guidelines for insurers to implement cybersecurity measures and effectively manage these risks. New Disaster Risks Climate change has intensified the frequency and severity of natural disasters such as hurricanes, earth- quakes and floods, leading to greater potential losses for the insurance sector. The National Insurance and Bonding Commission has updated capital and tech- nical reserve requirements for insurers to ensure they can meet obligations arising from catastrophic events. It also promotes the adoption of risk management models that incorporate climate change scenarios. Artificial Intelligence and Increased Automation The integration of artificial intelligence (AI) and auto- mated processes into insurers’ operations presents challenges related to ethics, privacy and decision- making accuracy. The National Insurance and Bond- ing Commission is considering issuing guidelines for the ethical and responsible use of AI in the insurance sector, with a focus on transparency, data protection and non-discrimination in automated processes. 11.2 New Products or Alternative Solutions In response to the emerging risks outlined in 11.1 Emerging Risks Affecting the Insurance Market , insurers and technology companies in Mexico are developing innovative products and solutions to man- age and mitigate these challenges, including the fol- lowing notable initiatives. Cyber-Insurance To address increasing cyber threats, specific policies have been designed to cover financial losses caused by cyber-attacks.
10. Insurtech 10.1 Insurtech Developments
The insurance sector continues to strengthen its use of digital channels for the placement of insurance products, which necessitates robust information tech- nology infrastructure and the ability to operate within an environment conducive to digital business models, given the risks and vulnerabilities posed by the digi- tal market, particularly the threat of cyber-attacks to insurance companies. It is increasingly common for companies to seek digital contracting across various product lines – a trend accelerated by the introduction of new market opportunities and the regulatory framework estab- lished under the Law to Regulate Financial Technology Institutions ( Ley para Regular las Instituciones de Tec - nología Financiera ) and the ongoing need to digitalise the market, especially in response to the COVID-19 pandemic. 10.2 Regulatory Response The National Insurance and Bonding Commission has adopted a co-operative and forward-looking approach in leveraging technology to support mar- ket development. This has led to the establishment of guidelines in the Sole Insurance and Bonding Cir- cular and its Annexes regarding the use of innovative models that, for the purposes of the Law to Regulate Financial Technology Institutions, refer to the provi- sion of financial services through tools or technologi- cal means that differ from those currently available in the market. 11. Emerging Risks and New Products 11.1 Emerging Risks Affecting the Insurance Market The Mexican insurance market faces a range of emerging risks that require proactive measures from both insurers and regulators. The National Insurance
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