The Latin American insurtech market continued to stabilise and mature in 2025, with 536 active companies and total investment of $199 mn, according to the 11th edition of the LatAm Insurtech Journey report by Mapfre.
Funding rose 117% year over year, marking the third-strongest year on record after 2021 and 2022, which were widely viewed as peak expansion years for regional venture capital.
The rebound reflects stronger and more scalable business models. The sector’s mortality rate improved by 8%, while new company formation continued.
Insurtech funding in Latin America hit a historic low of $50 mn in the 2024, a 78% drop from the same period in 2023.
The insurance sector in Latin America is a fertile ground for accelerated growth and innovations in business models. Additionally, the consultancy states that it is the fastest-growing region globally in the insurance sector.
As of now, there are 536 insurtechs in Latin America. They are estimated to represent 7% of the global insurtech ecosystem but currently account for less than 1% of total funding
Despite limited funding, the insurtech ecosystem in Latin America remains resilient. The mortality rate among startups dropped from 13% to 10%, with Argentina showing a 6% improvement, according to Global InsurTech Funding report.
According to Beinsure analysts, the combination of higher survival rates and selective capital inflows points to structural consolidation rather than speculative growth.
Over the past four years, 48% of start-ups exited the market, while 330 new ventures launched. This churn reshaped the competitive map.
Brazil’s share of regional insurtechs declined from 33% to 28%, even as it remains the largest single market.
Brazil, Mexico, and Chile continue to anchor the ecosystem. At the same time, cross-border expansion accelerated, with more start-ups operating beyond their home markets.
The rise of multilatina models reflects a shift toward scale across fragmented regulatory environments.
A notable structural shift is underway. Technology enablement now accounts for 51% of the market, overtaking pure distribution models.
Insurtech startups increasingly focus on underwriting tools, analytics platforms, embedded solutions, and operational infrastructure rather than direct policy sales.
Hugues Bertin, chief executive of Digital Insurance LatAm, said the ecosystem has transformed in four years, with stronger companies and more AI-driven business models emerging. He pointed to a move away from distribution-first strategies toward solutions that address operational and risk management gaps within insurers.
Carlos Cendra, scouting and investment lead in corporate innovation at Mapfre, said 2025 surpassed expectations. He described the combination of rising investment and company turnover as evidence of market maturation. The growing presence of insurtechs operating across multiple Latin American markets, he said, will be central to building more resilient and scalable platforms.
According to our data, LatAm’s insurtech cycle has shifted from rapid expansion to selective scaling, with capital concentrating in companies demonstrating operational depth, cross-border reach, and defensible technology assets.
