MEXICO Trends and Developments Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
Additional considerations The Mexican insurance market offers significant opportunities but operates within an increasingly complex regulatory, operational and litigious environ- ment. In many cases, approaching insurance solely from a commercial standpoint has become insuffi- cient. A comprehensive approach is required, com- bining technical analysis, legal risk prevention and a clear understanding of the judicial and administrative context. The evolution of the sector points towards greater product sophistication, increased litigation and more stringent regulation. These factors must be actively integrated into any risk management strategy aimed at anticipating contingencies and minimising finan- cial and operational impacts. Under these conditions, insurance has consolidated itself as an essential stra- tegic tool for the operation and expansion of busi- nesses in Mexico.
potential liabilities of approximately MXN175 billion. The amendment is expected to stabilise the fiscal position of the industry, although it requires affected insurers to forgo any pending litigation or internation- al arbitration, such as the high-profile AXA v Mexico case initiated before the International Centre for Set- tlement of Investment Disputes (ICSID). The long-term impact of these measures on the sector’s financial structure and compliance obligations remains to be fully assessed. While the transitory measures introduced under the Federal Revenue Law 2026 are expected to bring short-term fiscal stability to the insurance industry, the restriction on VAT creditability for subsequent fiscal years is likely to have a downstream effect on con- sumers. As insurers will no longer be able to deduct input VAT related to the settlement of claims, oper- ating costs are expected to rise, which may in turn lead to higher premium prices. This impact could be particularly significant in a market already affected by sharp increases in the cost of health-related ser- vices – including medical supplies and professional fees – and by the growing frequency and severity of civil liability litigation, where courts have increasingly issued multimillion-peso awards.
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