MEXICO Trends and Developments Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
Overview of the Insurance Market in Mexico The Mexican insurance market is currently undergoing a period of structural adjustment that reflects broader transformations in the country’s economic, regulatory and social environment. These developments have been accompanied by a gradual yet clearly percep- tible shift in the way policyholders understand insur- ance and in the expectations they place on this type of instrument. In the years following the pandemic, the industry has shown sustained recovery in premium issuance, driven both by renewed economic activity and by heightened risk awareness across several sec- tors. This growth, however, has been accompanied by a significant increase in the frequency and complexity of claims, which has begun to strain the traditional relationship between insurers and policyholders. The rise in claims cannot be explained solely by a greater number of loss events. Increasingly, claims involve technical, interpretative and quantification disputes, which have compelled insurers to continu- ously review their underwriting policies and claims- handling practices. At the same time, policyholders have raised their expectations in terms of response times, the effective scope of cover and transparen- cy in decision-making. The result has been a more sophisticated market, but also one that is more sensi- tive to conflicts arising from expectations not always reflected in the contractual wording. Despite its size and regional relevance, Mexico con- tinues to exhibit relatively low insurance penetration when compared with other jurisdictions of similar economic scale. This reveals a significant structural contrast: while there remains substantial potential for growth, particularly in underserved segments or in products still under development, long-standing challenges persist, including limited financial literacy, incomplete understanding of contractual terms and a degree of mistrust regarding the effective enforcement of policies when claims arise. In practice, these challenges often materialise as a gap between what the policyholder believes they have contracted and what the insurance policy actu- ally provides. This gap tends to widen in complex or specialised products and, almost inevitably, becomes more pronounced when a major claim occurs. It is not
uncommon for the policyholder’s experience during the claims process to shape their overall perception of the market and their willingness – or reluctance – to purchase or renew coverage in the future. In this environment, insurance has ceased to be viewed solely as a financial instrument for risk trans- fer. For many companies operating in Mexico, both domestic and international, insurance programmes have become an integral component of broader risk management strategies, operational planning and cor- porate governance frameworks. The accurate identifi- cation of relevant risks and the alignment between the company’s risk profile and its coverage have become essential elements for ensuring business continuity. The experience of recent years has highlighted that the proper structuring of insurance programmes can make the difference between a legally manageable contingency and a crisis with significant impact. The interaction between insurance and the Mexican legal environment – characterised by an increasing judicialisation of disputes – has reinforced the need to incorporate legal considerations from the earliest stages of policy design. Under this approach, insur- ance has consolidated itself not only as a mechanism for asset protection but also as a strategic tool that directly influences the management of legal, financial and reputational risks. Increase in claims and disputes One of the most visible developments in the Mexican insurance market in recent years has been the steady rise in the number of claims and disputes between policyholders and insurers. This phenomenon results from a combination of factors rather than a single cause, including the higher incidence of losses, more demanding readings of policy terms by insureds and broader expectations regarding the scope of cover- age. In many cases, disputes arise from differences in the interpretation of the insurance contract, particularly regarding the effective scope of coverage, the appli- cation of exclusions, the fulfilment of certain contrac- tual obligations by the insured and the timeliness of notice of loss. These discussions are frequently com- pounded by disagreements over the quantification of
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