MEXICO Trends and Developments Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
most litigated within the market, compelling indus- try participants to exercise heightened care in policy drafting, technical claims handling and communica- tion with insureds. In summary, the pressures facing the major medi- cal expense insurance sector in Mexico largely stem from structural imbalances within the healthcare deliv- ery chain. Unless the distortions in price-setting by hospitals, physicians and pharmaceutical suppliers are comprehensively addressed, the effects of this dynamic will continue to be reflected in the cost of insurance, to the detriment of policyholders and the Insurance intermediaries, agents and brokers play a fundamental role in the placement and administration of insurance policies. However, their activities are cur- rently subject to an increasing level of scrutiny, both from policyholders and from supervisory authorities and the courts. In recent years, there has been a noticeable increase in claims brought against intermediaries, particularly in cases where policyholders allege that they received incomplete or inadequate advice, or even claim that they never had effective access to the general terms and conditions of the policy. Such disputes often relate to omissions in the explanation of key provi- sions, deficiencies in claims management or errors in the placement of the most suitable product for the client’s risk profile. sustainability of the system as a whole. Liability of insurance intermediaries In this context, for policyholders, the selection of an experienced and specialised intermediary has become a critical element within their overall insur- ance strategy. For intermediaries themselves, it has become essential to strengthen documentation and advisory processes in order to prevent future contin- gencies and potential litigation. Significant resolution of VAT disputes in the insurance sector In late 2025, the Mexican government reached a land- mark agreement with insurance companies that had been engaged in long-standing litigation with the tax authorities concerning the crediting of Value Added
Tax (VAT) related to claims payments. Under this arrangement, the government agreed to waive the VAT liabilities that insurers allegedly failed to remit in previous years, subject to the condition that insur- ance companies comply with certain requirements – in particular that they may no longer credit the VAT paid to their suppliers for goods or services acquired in connection with the settlement of claims under their insurance policies. This legislative compromise was formalised through the inclusion of a Transitory Article ( Vigésimo Octavo ) in the Federal Revenue Law for fiscal year 2026 ( Ley de Ingresos de la Federación , LIF 2026). The provision allows insurers authorised by the National Insurance and Surety Commission ( Comisión Nacional de Seg - uros y Fianzas ) to continue crediting VAT on goods or services used to settle insurance claims until 31 December 2024, provided that such goods or services were used to fulfil contractual obligations where the indemnity consisted of repairing damages or replacing the insured property. The transitory article also grants a fiscal stimulus equivalent to the VAT amounts previously credited or assessed, including their corresponding updates, penalties and surcharges, to insurers that are cur- rently subject to tax audits without a final assessment having been issued, or that have pending tax credits under dispute before the tax authorities or adminis- trative courts. To benefit from this stimulus, insurers must withdraw or waive all pending legal challenges and formally request the application of the transitory regime no later than 31 January 2026. Insurers opting for this scheme must correct their fiscal position and complete payment by 31 March 2026, with the option to pay in up to 12 instalments, provided that the final instalment is paid by 15 Decem- ber 2026. Those who meet these requirements will receive a 100% waiver of surcharges and execution costs associated exclusively with VAT. The incentive, however, will not be available to insurers that have been convicted of tax offences or are listed as non- compliant taxpayers. This transitional measure represents a pragmatic resolution to a dispute that had exposed insurers to
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