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Mexico General Insurance: Key trends and Opportunities to 2025

The total gross written premium of general insurance market in Mexico was valued at $15.40 billion in 2020. The market is projected to grow at a CAGR of more than 6% during the period 2021-2025. According to the Mexican Association of Insurance Institutions (AMIS), the COVID- 19 impact was the fourth most expensive catastrophe in the country’s history.

Motor insurance was the largest line of business in 2020 followed by personal accident and health (PA&H) insurance, property insurance, marine, aviation and transit (MAT) insurance, financial lines insurance and liability insurance respectively. Liability insurance was thus the fastest growing sub-segment during the review period.

Overview of general insurance market in Mexico

Overview of general insurance market in Mexico

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What are the market dynamics in general insurance market in Mexico?

GlobalData’s annual Banking and Payments Survey noted that around 45.8% of customers in Mexico preferred purchasing home building and contents insurance from banks. It was the most sought-after channel for all groups of customers but had a 75% preference rate among customers aged between 35 and 44, indicating a strong preference for bancassurance products. Insurance brokers were the second most-preferred channel preferred by all age groups and registered a 66.7% preference rate among customers aged between 55 and 64. Consumer convenience has allowed online aggregators to gain a market share among the younger, more technically sound population. 

Service-based insurance models

The COVID-19 outbreak highlighted the importance of service-based models. New lines of business are being designed on service-based models, including innovative products using technology and a greater focus on preventive medicine.

Telehealth

Due to the SARS-Co2 pandemic, the Mexican Chamber of Deputies has required the Ministry of Health to issue a Mexican Official Standard on telemedicine. Telehealth services gained traction due to the pandemic, and insurers included this service in their product portfolio.

Microinsurance

Mexico’s huge informal sector and the low-income population are the key drivers for microinsurance. The pandemic encouraged insurers to introduce inclusive products for people with lower economic incomes.

What are the lines of business in Mexico’s general insurance market?

Property, motor, and non-personal accident and health (PA&H) insurance accounted for over 80% of the total general insurance business in 2020, while other lines of business contributed the remaining. 

Property insurance market in Mexico

Property insurance held a major share in the Mexican general insurance business in 2020 and is expected to grow moderately in 2021. The property insurance segment remains impacted by the high catastrophic risk in the country. Despite the increasing risks, however, the penetration rate registered a marginal increase from 2016 to 2020.

Motor insurance market in Mexico

Motor insurance segment is expected to project a relatively low growth rate during the forecast period. The lockdown restrictions imposed due to Covid-19 had reduced motor insurance claims and new car sales, resulting in an annual contraction in individual auto premiums in 2020.

Liability insurance market in Mexico

Liability insurance has been the fastest growing sub-segment in the general insurance business. However, a slump in the tourism sector is expected to directly impact the revenues of liability insurers, as it is mandatory for tourism operators and the hospitality sector. 

Financial lines insurance market in Mexico

Financial lines insurance segment is expected to grow moderately during the forecast period. Surety insurance follows a mechanism to guarantee obligations where the insured gets indemnified by the insurer, in case the policyholder breaches any legal or contractual obligations, so that it is easier to collect and enforce compared to traditional bonds. Therefore, the shift in policy preference is expected to further develop the Mexican surety insurance market in future.

Marine aviation and transit (MAT) insurance market in Mexico

With the outbreak of COVID-19, the Mexican marine aviation and transit (MAT) insurance segment recorded the steepest decline in 2020. However, the MAT segment is expected to recover from 2021 to have a moderate growth during the forecast period.

Personal accident and health (PA&H) insurance market in Mexico

The personal accident and health insurance segment registered a strong growth in 2020 with the onset of the pandemic and the advent of remote work, coupled with rising demand for health insurance, accelerated the digital adoption of health insurance policies in the country. The segment is expected to project a strong growth even during the forecast period.

General insurance market in Mexico, by line of business

General insurance market in Mexico, by line of business

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General reinsurance market in Mexico

Mexico’s vulnerability towards natural disasters such as floods, thunderstorms, earthquakes and volcanoes prompted the demand for reinsurance during the review period. The World Bank IBRD-issued FONDEN 2020 catastrophe bond remains on- risk through to March 2024, benefitting Mexico’s reinsurance industry. Cat bonds allow insurers to transfer a proportion of catastrophe-based risk such as hurricanes, earthquakes, typhoons and thunderstorms to the capital markets. Special Purpose Vehicles (SPVs), primarily created by sponsors, insurers or reinsurers, are a mode through which cat bonds are issued.

Who are the major players in Mexican general insurance market?

In the Mexican general insurance market, the general insurance segment was concentrated during the review period. The top 10 insurers accounted for 61.8% of GWP in 2020, while the top five accounted for 43.3%. The concentration of the top ten insurers remained steady during the review period, indicating a lack of competition. Grupo Nacional Provincial was the leading market player followed by Axa Seguros, Qualitas Compania De Seguros, Chubb de Mexico, MetLife, Seguros Inbursa, and among others.

Grupo Nacional Provincial held the second place in 2020 in terms of the sales of medical expenses and motor insurance and its merger of its Mexican insurance businesses under the Chubb de Mexico brand in 2018, contributed to this growth.

The Mexican general reinsurance market was dominated by Hannover RücK SE, Scor Global Life SE and General Reinsurance AG, during the review period.

General insurance market in Mexico, by key players

General insurance market in Mexico, by key players

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Market report scope

Market size (Year – 2020)

$15.4 billion (Gross Written Premiums)
Growth rate CAGR of >6% from 2021 to 2025
Base year for estimation 2020
Segmentation by line of business Property Insurance, Motor Insurance, Liability Insurance, Financial Lines Insurance, Marine Aviation and Transit (MAT) Insurance, Personal Accident and Health (PA&H) Insurance
Forecast period 2021-2025
Key players Grupo Nacional Provincial, SAB; Axa Seguros, S.A. de CV; Qualitas Compania De Seguros, S.A. de CV (Mexico); Chubb de Mexico, Compania De Seguros, SA de CV; MetLife Mexico, S.A.; Seguros Inbursa, S.A., Grupo Financiero Inbursa; Seguros Atlas, S.A; Mapfre Mexico, S.A.; Seguros Banorte, SA de CV, Grupo Financiero Banorte; Seguros Monterrey New York Life, SA de CV

This report provides a comprehensive analysis of the general insurance market in Mexico. It provides:

  • Historical values for Mexican general insurance segment for the report’s 2016-2020 review period, and projected figures for the 2021-2025 forecast period.
  • Detailed analysis of the key categories in Mexican general insurance segment, and market forecasts to 2025.
  • Profiles for the top general insurance companies in Mexico, and outlines the key regulations affecting them.

Reasons to Buy

  • Make strategic business decisions using in-depth historic and forecast market data related to Mexican general insurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends and growth opportunities in the Mexican general insurance segment.
  • Assess the competitive dynamics in the general insurance segment.
  • Identify growth opportunities and market dynamics in key product categories.

Key Players

Grupo Nacional Provincial

Axa Seguros

Qualitas Compania De Seguros

Chubb de Mexico

MetLife

Seguros Inbursa

Seguros Atlas

Mapfre Mexico, S.A.

Seguros Banorte

Seguros Monterrey New York Life

Table of Contents

Table of Contents

Executive Summary

Economy Overview

Regulatory and Compliance

Key Market Trends

Summary Trends and KPIs

Key Trends by Line of Business

Property Insurance

Motor Insurance

Liability Insurance

Financial Lines Insurance

Marine, Aviation and Transit Insurance

Personal Accident and Health Insurance

Miscellaneous Insurance

Distribution Channels

Competitive Landscape

Competitor Profiles

Reinsurance

Regulatory and Compliance

Competitor Profiles

Insurtech

Appendix

Frequently Asked Questions

The total gross written premium of general insurance market in Mexico was valued at $15.4 billion in 2020.

The general insurance market in Mexico is projected to grow at a CAGR of more than 6% during the period 2021-2025.

Key lines of business in Mexico’s general insurance market includes property insurance, motor insurance, liability insurance, financial lines insurance, non-life personal accident and health (PA&H) insurance, and marine, aviation and transit (MAT) insurance.

Grupo Nacional Provincial, SAB is the leading market player in the general insurance market in Mexico followed by Axa Seguros, S.A. de CV, Qualitas Compania De Seguros, S.A. de CV (Mexico), Chubb de Mexico, Compania De Seguros, SA de CV, MetLife Mexico, S.A and Seguros Inbursa, S.A., Grupo Financiero Inbursa.

Hannover RücK SE, Scor Global Life SE and General Reinsurance AG are the leading players in the Mexican general reinsurance market.

Key insurtech companies in Mexico include Zenda.la and Guros.

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