Insurances

The Insurances market in Mexico is predicted to reach a gross written premium of US$27.83bn in 2024.
Life insurances is the dominant segment, with a projected market volume of US$16.11bn in the same year.
The average spending per capita in the Insurances market is expected to be US$215.10 in 2024.
When compared globally, the United States is projected to have the highest nominal value at US$3.8tn in 2024.
The gross written premium is anticipated to have an annual growth rate (CAGR 2024-2029) of 3.30%, resulting in a market volume of US$32.74bn by 2029.
Furthermore, it is worth noting that the United States will continue to generate the highest gross written premium globally, with US$3.8tn in 2024.
Mexico's insurance market is witnessing a surge in demand for health insurance due to the increasing awareness of the importance of healthcare and the rising cost of medical treatments.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Mexico is experiencing significant growth and evolution.

Customer preferences: Mexican consumers are increasingly prioritizing insurance products to protect their assets and mitigate risks in an uncertain economic environment. The demand for health insurance is on the rise as individuals seek coverage for medical expenses. Additionally, there is a growing interest in auto insurance, driven by the need for protection in a country with high rates of road accidents.

Trends in the market: One notable trend in the Mexican insurance market is the increasing adoption of digital channels for purchasing insurance policies. Insurers are leveraging technology to offer convenient online platforms for customers to compare plans and make informed decisions. Moreover, there is a shift towards customized insurance solutions tailored to the specific needs of different consumer segments.

Local special circumstances: Mexico's insurance market is influenced by unique regulatory and demographic factors. The regulatory environment in the country plays a crucial role in shaping the insurance landscape, with stringent requirements set by the government to ensure consumer protection. Additionally, the demographic composition of Mexico, with a large young population, presents opportunities for insurers to develop innovative products targeting this segment.

Underlying macroeconomic factors: The growth of the insurance market in Mexico is also supported by favorable macroeconomic conditions. A stable economic outlook and rising disposable incomes have increased the affordability of insurance products for a larger section of the population. Furthermore, the increasing awareness about the importance of insurance as a financial planning tool has contributed to the market expansion. Overall, the Insurances market in Mexico is witnessing a transformation driven by changing customer preferences, technological advancements, regulatory dynamics, and macroeconomic trends. As insurers continue to innovate and adapt to the evolving landscape, the market is poised for further growth and development in the coming years.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.