Resilience and Growth in the Latin American Insurtech Sector
In the latest LatAm Insurtech Journey, the ninth edition crafted by Digital Insurance LATAM with sponsorship from MAPFRE, a Madrid-based insurance giant, it was revealed that the total annual investment in the Latin American insurtech sector experienced a 38% decline compared to 2023. The figures stood at a modest $92 million. However, the second half of the year witnessed a remarkable 156% surge in investments compared to the first half, signaling a potentially optimistic outlook for 2025.
Despite the subdued venture capital flow throughout the year, the Latin American insurtech ecosystem concluded 2024 with an impressive tally of over 500 insurtech companies. This marks a growth rate of 5% for the year, maintaining an average annual growth rate of 12% since 2021. The report highlights a 29% attraction rate for foreign insurtechs, while international expansion is escalating at a rate of 23%. Leading the charge are Chile and Peru, with internationalisation rates of 32% and 50% respectively, driven by their pressing scalability demands.
Within the insurtech landscape, a slight majority of 51% is dedicated to digital distribution, whereas the remaining 49% function as enablers, collaborating with re/insurers and intermediaries.
Expert Insights and Future Projections
Hugues Bertín, CEO of Digital Insurance LatAm & President of the Pan-American Insurtech Alliance (AIP), commented, “This year has been a testament to resilience and learning. There’s a distinct correlation between the growth of insurtechs in a country, their international reach, and their robust partnerships with traditional sectors.”
He further elaborated, “The continued growth of the internationalisation and attraction indices highlights two key trends: insurtechs with strong value propositions are expanding swiftly, and multinational entities view Latin America as a unified, expansive market.”
Carlos Cendra, Scouting & Investment Lead at MAPFRE Open Innovation, remarked, “The uptick in funding in the latter half of 2024, combined with the steady rise in startup numbers, underscores the ecosystem’s strength and the region’s commitment to the insurance industry’s potential. As we step into 2025, new financing rounds like those of Sami and Olé Life suggest a promising trend, although we must remain watchful of global venture capital dynamics and their potential impacts on Latin America.”
