Life insurance - Mexico

Mexico

The Life insurance market market size in Mexico is projected to reach US$15.99bn in 2024.
The average spending per capita in the Life insurance market market is expected to be US$123.60 in 2024.
The gross written premium is predicted to have an annual growth rate (CAGR 2024-2028) of 3.29%, resulting in a market volume of US$18.20bn by 2028.
In global comparison, the United States is expected to generate the highest gross written premium of US$1,271.0bn in 2024.
Mexico's life insurance market is experiencing a surge in adoption as more people prioritize financial protection and long-term planning.

Market

Region

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Currency

Analyst Opinion

Mexico's Life insurance market has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Mexico are increasingly recognizing the importance of financial protection and long-term security, leading to a growing demand for life insurance products. With a rising middle class and increased awareness about the benefits of life insurance, more individuals are opting for policies to secure their family's future.

Trends in the market: One notable trend in the Mexican life insurance market is the shift towards digitalization. Insurers are leveraging technology to reach a wider customer base, streamline processes, and offer more personalized products. Additionally, there is a growing trend towards customizable life insurance policies that cater to specific needs and preferences of customers.

Local special circumstances: In Mexico, cultural factors play a significant role in shaping the life insurance market. Family is highly valued in Mexican society, and this emphasis on familial ties drives individuals to seek financial protection for their loved ones through life insurance. Moreover, the market is characterized by a competitive landscape with both domestic and international insurance companies vying for market share.

Underlying macroeconomic factors: The economic stability and steady growth in Mexico have contributed to the positive trajectory of the life insurance market. As the economy continues to expand, disposable incomes are on the rise, enabling more people to afford life insurance coverage. Additionally, regulatory reforms and government initiatives to promote insurance penetration have further fueled the growth of the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.