(Floralis Genérica statue, Buenos aires. Source: Pixabay.)
The Latin American InsurTech sector ended 2025 with $199 million in funding, a 117 percent increase over 2024 and the third-highest investment total on record, behind only 2021 and 2022. According to the 11th edition of the LatAm InsurTech Journey report from Digital Insurance LatAm and sponsored by MAPFRE (Madrid), the number of active InsurTech companies grew to 536, representing 7 percent net annual growth.
Hugues Bertín, Founder and CEO, Digital Insurance LatAm.
“The ecosystem has evolved dramatically in just four years,” says Hugues Bertin, founder and CEO, Digital Insurance LatAm. “Today we’re seeing higher-quality companies, more AI-driven models, and more InsurTechs solving real industry problems. The focus has shifted from pure distribution to technology enablement, which is reshaping the market.”
The market also showed signs of improved resilience. The mortality rate—the proportion of startups that closed during the year—declined to 8 percent, suggesting stronger, more durable business models. Since 2021, 48 percent of startups have exited the market, but 330 new companies have launched, pointing to continued ecosystem renewal.
Brazil remained the largest market but saw its regional share decline from 33 percent to 28 percent. Chile, meanwhile, grew its number of active InsurTechs by 25 percent to reach 100, consolidating its position as the third-largest market behind Brazil and Mexico.
Tech Enablers Rise
Carlos Cendra, Scouting and Investment Lead, Corporate Innovation, MAPFRE.
The report also notes a structural shift in business models. Technology enablers—companies providing tools for claims, fraud detection, digital intermediation, and risk analytics—now represent 51 percent of the ecosystem, overtaking distribution-first models.
“2025 exceeded expectations,” says Carlos Cendra, Scouting and Investment Lead, Corporate Innovation, MAPFRE. “Strong investment combined with ecosystem churn shows a market that is maturing. The growing role of ‘multilatina’ InsurTechs—operating across multiple markets—will be key to building more resilient, scalable companies.”
Cross-border expansion continues to rise, with more startups scaling beyond their domestic markets in pursuit of growth and diversification.