The Latin American (LatAm) insurtech market continued its recovery and maturation in 2025, with the number of active companies standing at 536 and investments reaching US$199 million, according to findings from Mapfre’s 11th edition of the ‘LatAm Insurtech Journey’ report.
Investment surged 117% year-on-year, making it the third-strongest year on record behind 2022 and 2021, widely considered LatAm’s investment boom years.
Growth is increasingly being driven by stronger, more scalable business models. The improving mortality rate – which has improved 8% -, combined with continued start-up creation, indicates a healthier ecosystem capable of sustaining long-term innovation, according to the report.
Over the past four years, the sector has seen significant transformation: 48% of start-ups have closed, while 330 new companies have been established. This shift has led to a decrease in Brazil’s regional share, moving from 33% to 28%.
Geographically, Brazil, Mexico, and Chile continue to be the dominant markets. However, the trend of start-ups expanding beyond their home countries is driving a continuous increase in cross-border growth.
One of the most significant changes in the ecosystem is the move away from simple distribution towards technology enablement, which now represents 51% of the market.
Hugues Bertin, CEO and founder of Digital Insurance LatAm, said: “The ecosystem has evolved dramatically in just four years. Today we’re seeing higher-quality companies, more AI-driven models, and more insurtechs solving real industry problems. The focus has shifted from pure distribution to technology enablement, which is reshaping the market.”
Carlos Cendra, Scouting & Investment Lead in Corporate Innovation at Mapfre, commented: “2025 exceeded expectations. Strong investment combined with ecosystem churn shows a market that is maturing. The growing role of ‘multilatina’ insurtechs – operating across multiple markets – will be key to building more resilient, scalable companies.”
