The latest edition of the Latam Insurtech Journey report, compiled by Digital Insurance LATAM and sponsored by Mapfre, analyzes the evolution of the ecosystem during the first half of 2026, revealing a landscape that is more dynamic but also more demanding. At the end of June 2026, the region has 576 insurtechs, 14% more than twelve months earlier. It is the highest growth rate since 2023 and represents a clear recovery compared to the 2% recorded in the previous annual period.

In the last twelve months, 102 companies were created and 35 disappeared. The ratio amounts to about 3.5 new insurtechs for each closure. A fact that confirms that Latin America retains the capacity to generate projects, although the market increasingly rewards proposals that solve specific problems of the industry and customers.

The lower failure rate confirms a period of consolidation.

The annual failure rate stood at 7% at the end of the first half of 2026, down from the peak of 12.7% recorded in 2024, marking five consecutive half-year periods of decline. The continued downward trend indicates that more insurtechs are successfully moving beyond the early stages of development and sustaining their operations in the market.

Regional expansion reduces dependence on a single market

Mapfre’s report identifies international expansion as a key resilience factor across the region. In this regard, insurtechs operating in a single country are four times more likely to fail than multilatinas. Expansion, therefore, is more than just a growth strategy. It also reduces dependence on a single market and demonstrates whether a company’s value proposition can adapt to different regulatory and commercial environments.

At the end of the first half of 2026, the regional internationalization index stood at 19.7%, reflecting an ecosystem that is becoming increasingly less concentrated. Brazil remains the regional leader with 217 insurtechs, although its relative share has declined, while Mexico has reached 150 companies, Chile 112, and Argentina 110. The growth of these markets confirms that Latin America is now home to several innovation hubs capable of driving the development of the insurtech ecosystem.

Financing is concentrated in models with greater track record

Latin American insurtechs also raised $90 million during the first half of 2026. This makes it the third-strongest post-pandemic first half for funding, although it fell short of the amount raised during the first half of 2025.

The average funding round reached $8.2 million. Rather than signaling a broad recovery in investment, the figures point to a greater concentration of capital. Investors are prioritizing companies with clear applications for the insurance industry and genuine potential to scale.

Life & Care focuses investor interest

The concentration of investment in Life & Care is one of the clearest signs of the increased selectivity of capital during the first half of 2026. Although this segment accounts for 26% of the region’s insurtechs, it attracted 76% of total funding, underscoring investors’ strong interest in health and life insurance solutions.

The contrast with the Mobility segment is striking. Although it includes 211 companies and represents 37% of the ecosystem, it received only 9% of investment during the semester. The data shows that the number of players does not determine the attractiveness of a category: investors are prioritizing business models with a clearer market opportunity.

Innovation gains weight within the insurance operation

Finally, it is worth highlighting that technology enablers now represent 52% of the ecosystem, compared with 48% for insurtechs focused on distribution. This balance shows that innovation is increasingly focused on addressing internal insurance business needs, with solutions that enhance existing processes.

Artificial Intelligence is also expanding its presence across the ecosystem. The report identifies 18 insurtechs specializing in agentic AI, with applications in areas such as claims and underwriting. Its evolution will depend on its ability to integrate into insurance companies’ processes and demonstrate tangible results, with appropriate control mechanisms for each use case.

Carlos Cendra, Scouting & Investment Lead in Corporate Innovation at Mapfre, points out that “the data from this edition confirms that the Latin American insurtech ecosystem continues to evolve positively. The sector’s strength is reflected in the growth in the number of startups, the decline in the failure rate, and funding levels that position 2026 as a year of significant potential. If the current trajectory continues, it could become one of the strongest years of the post-pandemic period. In addition, trends such as agentic artificial intelligence, the development of Life & Care, and new distribution models are driving a new phase of insurance innovation across the region. At Mapfre, we will continue to closely monitor the evolution of this market and the opportunities it creates for the entire ecosystem.”