MEXICO Trends and Developments Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
damages and the determination of the indemnifiable amount. This situation has led to steady growth in insurance- related litigation, primarily within the civil and com- mercial spheres. In this context, early legal manage- ment of claims has become critically important, as decisions made during the initial stages of a dispute often have a direct impact on its subsequent course. Judicial interpretation of insurance contracts Mexican courts have taken on an increasingly active role in the interpretation of insurance contracts, with a direct impact on market dynamics. In a growing num- ber of decisions, courts have incorporated principles aimed at protecting policyholders, even in disputes involving large corporations or technically sophisti- cated contracts. In some cases, this approach has led to broad inter- pretations of coverage, favouring considerations of contractual balance and good faith over a strictly lit- eral reading of the policy wording. While such criteria seek to correct potential asymmetries, they have also generated uncertainty regarding the actual scope of certain coverages, with direct effects on the principle of mutuality that underpins insurance. As a result, both insurers and policyholders have had to adjust their strategies not only during litigation but also at the contracting stage. For corporate cli- ents and foreign market participants, it is particularly important to understand that the outcome of a dispute in Mexico may depend as much on judicial interpreta- tion and the evaluation of the parties’ conduct as on The recent judicial reform implemented in Mexico has profoundly transformed the country’s system of jus- tice administration. In September 2025, a significant portion of the judges, magistrates and justices of the Federal Judiciary were replaced, removing those who had previously acceded to their positions through the judicial career system and appointing, in their place, officials elected by popular vote. This election regis- tered a turnout of approximately 12% of the national the written terms of the policy itself. Judicial reform and its impact on the administration of justice
electoral roll. The remaining members of the Federal Judiciary are expected to be replaced in September 2027. At the local level, most Mexican states replicated this model, substituting their sitting judges with those elected by popular vote. In practice, career judges were displaced despite their right to participate in the electoral process. In most cases, the winning candi- dates were those supported by political connections to the Executive or Legislative branches. This change represents a significant institutional setback, as it politicises the judicial function and discourages the professionalisation of the judiciary. The practical consequences of this reform are already visible. Across several courts, the lack of experience and technical expertise of some newly appointed judges has become evident, particularly in the han- dling of oral proceedings, which constitute the pre- dominant mechanism for resolving insurance-related disputes. These proceedings require a high level of technical competence, as hearings are recorded on video and judgments must be rendered immediately, without the benefit of external advice or deliberation. This environment demands both strong legal reason- ing and judicial independence. Given the absolute majority currently held by the rul- ing political party in both the Federal Congress and numerous local legislatures, it appears unlikely that any substantial amendments to the judicial reform will be promoted in the short term. A potential political reconfiguration will not be able to open the door to revisiting the current system of judicial appointments until the mid-term federal elections of 2027. The Mexican legal community – particularly those of us involved daily in litigation and judicial proceedings – maintains the expectation that courts will continue to adjudicate in accordance with the law and inde- pendently of political influence. Nevertheless, popu- lar election mechanisms tend to create political com- mitments that enable external interference in judicial decision-making, undermining legal certainty and the predictability of court rulings, especially in commercial and insurance-related matters.
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