The insurtech ecosystem in Latin America closed 2025 with a clear shift in momentum. After four years marked by the adjustment following the funding crisis that began in 2022, the industry is entering a new phase characterized by greater strategic discipline. As of year-end 2025, the market includes 536 active insurtechs. Investment has returned, but it is now concentrated in projects that address specific insurance business challenges.
According to the 2026 Economic and Industry Outlook report by Mapfre Economics, Latin America is expected to balance economic growth this year with a gradual process of disinflation. This environment supports the insurance industry, which relies on economic predictability to develop products, scale business models, and expand coverage in still-underinsured markets.
On the other side of the equation, the protection gap continues to limit sector growth. As highlighted in the content shared by Mapfre during the latest edition of ITC Vegas, held last October, insurance penetration in Latin America remains around 3%. This figure reinforces the need for more accessible products, more efficient distribution models, and solutions capable of reaching new segments of the population.
According to the Latam Insurtech Journey 2026 report, 2025 marked a turning point for the insurtech industry in Latin America. After several years of contraction, funding is recovering under more demanding criteria. Investment reached 199 million dollars, representing growth of 117% compared to 2024, although still well below the levels recorded in 2021 and 2022.
For Carlos Cendra, Scouting & Investment Lead of Corporate Innovation at Mapfre, “The data show a new phase: the market now prioritizes business-impact models with real scalability.”
A more mature, impact-driven insurtech ecosystem
Latam Insurtech Journey 2026 reflects a more streamlined ecosystem, with fewer transactions and a higher level of strategic discipline. Over the past four years, the region has clearly shifted from a distribution-focused model—which once accounted for nearly 60% of the ecosystem—toward a stronger presence of technology enablers, which now represent more than 51% and continue to gain relevance.
The use of data, artificial intelligence, and operational efficiency is taking center stage in this new phase, in line with global insurance industry priorities. This evolution is also reflected in a decline in ecosystem mortality: the annual rate, including pivots, stands at 8%, driven by the disappearance of less resilient distribution models.
For Mapfre, this greater maturity enables stronger, higher-impact collaborations. “In Latin America, we’ve observed a clear focus on addressing core insurance business challenges—from underwriting to claims management—with the aim of expanding access to insurance,” says Carlos Cendra.
From a geographic perspective, the report confirms greater diversification of the insurtech ecosystem across the region:
- Brazil continues to lead in volume, with 214 insurtechs and 74% of total investment, although it is losing relative weight compared to other markets.
- Chile has consolidated its position as the third-largest ecosystem.
- Mexico ranks as the second-largest market by volume.
- Argentina is the fourth country, followed by Colombia in fifth place.
Each of these markets displays different dynamics in terms of capital attraction, growth, and internationalization. What they share is the strong commitment of all stakeholders to continue expanding.
Funding and collaboration as drivers for 2026
Looking ahead to 2026, Latam Insurtech Journey 2026 anticipates a year of consolidation. Funding is expected to concentrate on insurtech startups with clear value propositions, strong integration with insurers, and the ability to scale across multiple markets. The internationalization rate has already reached 19.2%, and 32% of active insurtechs in the region are foreign companies. This reinforces the attractiveness of the Latin American market despite a more selective environment.
“The challenge isn’t just to innovate, but to do so in a coordinated way—connecting funding, collaboration, and business priorities,” says Carlos Cendra. “This approach enables the insurtech ecosystem to contribute sustainably to closing protection gaps.”
With a more stable macroeconomic environment and a more professionalized insurtech ecosystem, 2026 is shaping up to be a decisive year for transforming innovation and funding into measurable results for the insurance industry and for Latin American society.