A. M. The insurtech ecosystem continues to show remarkable growth in Central America, with a 35% increase in the number of startups in the last year, reaching a total of 27. This growth far exceeds the 5% recorded in Latin America as a whole, highlighting the region as a key point of innovation in the sector.
These companies, which combine technology and innovation to transform the insurance sector, are focusing especially on the mobility sector, which accounts for 41% of the initiatives in the region.
The recent creation in 2024 of the Asociación Insurtech Centroamérica y Caribe (AICC) marks an important step to strengthen the local ecosystem, working in collaboration with key players such as the Asociación Insurtech México (AIM) to foster development and attract investment. In addition to local development, Central America is consolidating as a pole of attraction for foreign insurtechs, reinforcing its growing relevance as an innovation hub.
These figures and conclusions come from the ‘Latam Insurtech Journey’ report, prepared by Digital Insurance LATAM with the sponsorship of MAPFRE, which analyzes the trends and current state of the insurtech industry in Latin America.
Insurtech landscape in Latin America
Insurtech financing in Latin America during 2024 has reached US$92 million, down 38% compared to 2023. During the second half of the year there was a 156% rebound compared to the first half of 2024, denoting a positive outlook for 2025 and the existence of investor interest in the region.
Despite this context of low investment in the annual computation of venture capital or venture capital investment, the total number of startups in the insurtech ecosystem in the region stands at 502, which translates into a growth of 5% during 2024. Taking into account that the mortality rate has been 9.4%, organic growth stands at +15% per year, with 70 new insurtech startups.
Mortality of insurtech startups continues to decline
The annual mortality rate of the ecosystem stands at 9.4% (vs 12.7% in 2023).
Insurtech startups that fail to scale to other countries are in a vulnerable situation. The mortality rate of multilatina startups is three times lower than that of local insurtechs.
Enablers and distributors balance out
51% of insurtechs are focused on distribution. This figure reflects a drop of 8% compared to 2020; despite the fact that it is still the majority scope, the ecosystem’s interest is looking towards other business models and balancing the scales.
Most distribution insurtechs are concentrated in personal auto and home lines with Broker or MGA models: the sum of both models reaches 39%. Neoinsurers represent 9% of all distribution, and stand out especially in Mexico and Brazil.
With regard to the enablers, we see a growth of 8 percentage points in the last four years, placing these business models at 49% of the total within the Latin American insurtech ecosystem.
It is worth noting that 16% of them offer solutions to digitize traditional intermediation. It is also important to note those that provide solutions for claims management (14%) and fraud detection (5%).
You may also be interested in
MAPFRE grows 30% and strengthens leadership in El Salvador
