Mexican insurers grapple with profit drops and rising claims in 2025
The Mexican insurance sector faced a challenging start to 2025, with profits dropping by 12.7% compared to the previous year. A rise in the loss ratio and higher payouts for accidents and illnesses have added pressure on companies. Industry leaders are now looking for ways to adapt to these financial strains. In the first three months of 2025, the sector’s loss ratio climbed from 45.9% to 47.3%. This increase followed fiscal reforms introduced at the beginning of the year, which removed VAT deductibility and squeezed profit margins. Meanwhile, payouts for accidents and illnesses surged to over 145 billion pesos—a 19% jump from 2024.
The industry also dealt with the aftermath of a security crisis in Sinaloa late last year. Around 277 vehicles were damaged during the unrest, prompting discussions about better coverage for large-scale incidents. Despite these challenges, auto theft of private cars has continued its steady decline since before the pandemic.
On a brighter note, the number of people insured for major medical expenses is expected to reach 14.5 million by the end of 2025. In 2024 alone, insurers processed over 1.3 million claims in this category. The sector’s response to these trends will likely be a key topic at the upcoming 35th Insurers’ Convention, set for May 12–13. With profits falling and claim costs rising, Mexican insurers are reassessing their strategies. Enhanced coverage for major events and adjustments to fiscal policies may shape the industry’s next steps. The upcoming convention will provide a platform for companies to discuss solutions to these pressing issues.
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