Investment Trends and Sector Growth
The ninth edition of the LatAm Insurtech Journey, crafted by Digital Insurance LATAM and backed by MAPFRE, has highlighted a notable 38% drop in annual investments compared to 2023, totaling just $92 million. However, a positive turn was noted in the latter half of the year with a remarkable 156% surge, hinting at a promising 2025 outlook.
The Latin American Insurtech Ecosystem
Despite the dip in venture capital investment, the Latin American insurtech ecosystem proudly closed 2024 with over 500 active insurtechs. This reflects a growth rate of 5% for 2024 and an average growth of 12% since 2021. The regional landscape now hosts 502 startups.
International Expansion and Collaboration
The report underscores a 29% attraction rate for foreign insurtechs, alongside a 23% uptick in international expansion. The overall internationalisation rate stands at 15.9%, with Chile leading at 32% and Peru at 50%, driven by scalability imperatives.
Within this vibrant ecosystem, 51% of entities focus on digital distribution, while the remaining 49% act as enablers, partnering with re/insurers and intermediaries.
Expert Insights on Growth and Potential
Hugues Bertín, CEO of Digital Insurance LatAm & President of the Pan-American Insurtech Alliance (AIP), remarked, “This year has been a testament to resilience and learning. There’s a strong correlation between the growth of insurtechs, their internationalisation, and their collaborative partnerships with the traditional sector.”
He further noted, “The ongoing growth in both internationalisation and attraction indices indicates two key trends: insurtechs with robust value propositions are expanding swiftly, and multinational companies perceive Latin America as a vast, unified market.”
Carlos Cendra, Scouting & Investment Lead at MAPFRE Open Innovation, observed, “The second half of 2024 saw an upturn in funding, alongside a continual rise in startups, underscoring the ecosystem’s resilience and the region’s commitment to the insurance industry’s potential.”
He concluded, “As we enter 2025, there are exciting announcements of new financing rounds, like those for Sami and Olé Life. This suggests a positive trend for 2025, though it’s crucial to monitor global venture capital dynamics and their potential impact on Latin America.”
