MEXICO Law and Practice Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
Insurtech and Digitalisation The adoption of financial technologies within the insurance sector, known as insurtech, has enabled the creation of more personalised and efficient products, improving the management of emerging risks. 12. Developments in Insurance Law 12.1 Significant Legislative or Regulatory Developments In terms of legislative amendments, the regulatory framework remains largely unchanged, with modifi- cations limited to updates in the Sole Insurance and Bonding Circular and its Annexes. These updates require insurers to incorporate ESG criteria into their Solvency and Financial Condition Reports. Undoubtedly, one of the most relevant aspects cur- rently affecting the Mexican insurance market is the fiscal policy concerning the crediting of VAT histori- cally utilised by insurers. In late 2025, the Mexican government and the insurance sector reached a set- tlement formalised through a transitory article in the 2026 Federal Revenue Law ( Ley de Ingresos de la Federación ), whereby insurers are no longer permit- ted to credit input VAT related to claim settlements. In exchange, the government agreed to waive the retro- active collection of alleged VAT liabilities from previous years. While this measure provides short-term fiscal certainty, it is expected to increase operational costs and, consequently, premium prices across various lines of business; see 2.3 Taxation of Premium .
As the insurance sector is continually shaped by judi- cial decisions that often establish important jurispru- dence for the sector, close monitoring of these rulings is essential.
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