Insurtech funding in Latin America reached 199 million dollars in 2025, 117% less than 2024. The solid growth the ecosystem experienced since the second half of 2024 positioned 2025 as the third-largest year for investment in the region, behind only 2022 (US$215 million, driven by Betterfly’s US$125 million round) and 2021 (US$425 million), widely regarded as the region’s “investment boom years.” 

In this bullish context, the total number of startups in the Latin American insurtech ecosystem has reached 536, representing 7% growth in 2025. Considering that the mortality rate continues to decline for another year (8%), gross growth stands at +15% annually, with 73 new insurtechs. 

These insights stem from the ‘Latam Insurtech Journey’ report, compiled by Digital Insurance LatAm and sponsored by Mapfre. This is the eleventh edition of this report, which analyzes the state of the insurtech industry in Latin America and provides an in-depth look at the region’s next insurtech star. 

The ecosystem is growing sustainably and opening the door to new players 

Breaking down the total number of startups in the region, Brazil (214), Mexico (139), and Chile (100) are the countries with the highest number of players. Uruguay (+33%), Chile (+25%), and Mexico (+16%) have seen the greatest growth in these companies. 

In 2025, international expansion grew by 21%, with a total internationalization index of 19%, i.e., multilatina startups operating in more than one country or originating outside the region. Peru (+67%), Argentina (+32%), and Chile (+28%) are the main drivers of the increase in the expansion index. Brazil, due to its size and market culture, remains predominantly domestic; however, 11% of insurtech startups are now foreign, marking a slight shift. 

The attraction index of foreign insurtechs sits at 32%, which means that three out of ten insurtechs in a single market are foreign. The three main attraction poles are Mexico (41%), Peru (66%), and Colombia (54%). 

“The growth outlook over the past four years has been impressive. During this period—marked by the onset of the funding crisis in March 2022—the ecosystem underwent a profound transformation: 48% of insurtech startups disappeared, and 330 new ones emerged, representing 28% growth,” says Hugues Bertin, CEO of Digital Insurance LatAm and Chair of the AIP (Pan-American Insurtech Alliance). “While a 36% growth rate over four years may seem low, it is important to understand that we are now talking about a ‘different ecosystem,’ with less focus on distribution and more technology enablers,” he adds. 

The mortality of insurtech startups continues to decline 

The annual mortality rate of the ecosystem stands at 8% (9.4% in 2024). Over the past two years, the mortality rate has been declining, suggesting a healthier and more robust market. 

In the last 12 months, Argentina and Mexico improved their mortality rates, reaching 1% and 4%, respectively. In contrast, Brazil (10%) experienced an increase, as a result of the ecosystem’s cleanup process. 

Insurtech startups that cannot be escalated to other countries are in a vulnerable situation. The mortality rate of multilatina startups is three times lower than that of local insurtechs (only four multilatina startups have disappeared in the past two years). 

Over recent semesters, distribution-focused insurtechs have experienced higher mortality rates than technology enablers. Today, we are observing a significant shift: the mortality rate of distribution insurtechs has dropped substantially, from 14% in 2022 to 6% currently. 

Enablers and distributors are balanced 

Some 49% of insurtech startups focus on distribution. ‘Neoinsurers’ represent 9% of the entire distribution sector, with a strong presence especially in Mexico and Brazil. Most of the distribution-focused ecosystem is concentrated in personal lines such as auto and home, operating under Broker or MGA models. Together, these two models account for 40% of the sector. 

A significant portion of digital intermediation (D2C) has shifted toward the B2B2C model to provide distribution platforms. In addition, fully digital players have emerged aiming to amplify distribution. 

Enablers have seen an 2-percentage-point increase over 2024, now making up 51% of the total within the Latin American insurtech ecosystem. 

Notably, 17% of enablers offer solutions for digitalizing traditional intermediation. Additionally, 14% specialize in claims management solutions, and 7% focus on fraud detection, risks, pricing, and subscription (7%). 

Statements: 

Hugues Bertin, CEO and founder of Digital Insurance LatAm, states, “the speed of evolution in the insurtech ecosystem is impressive. In just four years, 330 new players have emerged. Today, we are facing a very different ecosystem compared to 2022: more AI-driven agent startups, more insurtechs in commercial lines, more companies that have become distribution platforms enabling traditional players to offer embedded insurance, and much more. In this new wave, we are seeing a much higher quality of insurtechs: companies that aim to solve real problems and don’t fall in love with their own solution. Now, the big question is: When will the next LatAm success story emerge? That’s what we’re all waiting for.” 

Carlos Cendra, Scouting & Investment Lead in Corporate Innovation at Mapfre, notes that, “we were already anticipating a strong year, and fortunately, reality has exceeded our expectations. Not only because of the large volume of investment in the ecosystem, but also in how this combines with the number of startups that emerge and disappear—demonstrating that the ecosystem is maturing and strengthening. Above all, what stands out to me is a figure that I believe will drive the sector’s growth across the region: the ‘multilatina factor.’ If the mortality rate of local startups is three times higher than that of multilatinas, it is reasonable to expect the consolidation of startups that will add value across multiple markets while becoming more resilient.”