Simon Glairy, a recognized authority in insurance and insurtech with a focus on risk management and AI-driven risk assessment, provides valuable insights into the dynamic landscape of insurtech investment in Latin America. His understanding of the technological advancements and strategic shifts in the sector is crucial to comprehending the region’s rapid growth and transformation.
How has the Latin American insurtech investment landscape evolved over the past year?
Over the past year, Latin American insurtech investment has seen remarkable growth, with a significant 370% increase in funding during the first half of 2025 alone. This surge not only surpassed the total financing of 2024 by 32% but also reflected a growing momentum in regions traditionally less focused on insurance technology. The market landscape is evolving from a predominantly domestic focus to international expansion, with various countries within the region increasingly facilitating cross-border operations and embracing multi-country strategies.
What factors contributed to the 370% increase in funding in the first half of 2025 compared to the previous year?
Several factors played a role in this impressive increase. For one, the stabilization of mortality rates across different insurtech markets has encouraged investor confidence. Additionally, the industry’s adaptation and resilience post-pandemic have reignited interest and activity in funding initiatives. The enhanced focus on AI-driven solutions and collaboration between traditional insurers and technology companies has also expanded investment opportunities across various segments.
Can you explain Brazil’s dominance in the investment landscape? What advantages contributed to Brazil attracting 74% of total funding? How does Brazil’s number of insurtech companies compare to other countries in the region?
Brazil’s dominance is no accident; it stems from its large and dynamic market, which hosts the highest number of insurtech companies in the region at 203 firms. Its developed financial infrastructure and regulatory environment attract a significant portion of investment. Compared to other countries like Mexico and Argentina, Brazil’s larger ecosystem naturally draws more funding, bolstered by local innovations in life and care insurance sectors.
How has Chile become a regional growth engine despite its smaller number of insurtech companies? What role did low mortality rates play in this growth?
Chile may have fewer insurtech companies, but its strategic focus on optimization and low mortality rates has fueled its rise as a regional growth engine. By maintaining a low mortality rate of 3%, Chilean firms demonstrate efficiency and sustainable growth, making them attractive to investors. This focus on performance metrics rather than sheer numbers highlights Chile’s unique position in the Latin American insurtech landscape.
What does the current regional insurtech ecosystem look like in terms of company numbers and growth?
The regional insurtech ecosystem now comprises around 507 companies, reflecting a steady growth rate of 2%. This includes not only newly launched companies but also an expanding array of offerings in life, care, and mobility segments. Organic growth has been complemented by decreased mortality rates, leading to more stable and mature operational environments.
How does funding distribution across different segments like life, care, and mobility reflect industry trends?
Funding distribution across segments like life, care, and mobility indicates shifting industry priorities and growing diversification. Life and care insurance segments, capturing 65% of funding, underline a strong investor interest in health, wellness, and aging infrastructure. Mobility, accounting for 33%, highlights the increasing integration of technology in transportation insurance solutions, showcasing an industry’s adaptation toward more comprehensive service offerings.
Can you discuss the shift in business model focus within the insurtech sector over the past four years? What has caused the distribution-focused models to balance out with enabler companies?
The past four years have seen a move towards a more balanced split between distribution-focused models and enabler companies. Initially, distribution models dominated by 60%, but the growth of enablers has evened the distribution. The rise of enabler companies, which provide AI-driven solutions and digital frameworks for fraud detection, stems from a broader trend in digital transformation. As the traditional processes are digitalized, more insurers and brokers opt to leverage these technologies to enhance operational efficiency.
How have technology solutions, such as artificial intelligence agents and fraud detection, expanded within the enabler segment?
AI agents and fraud detection technologies have rapidly expanded, driven by the need for enhanced accuracy and efficiency in insurance processes. These technologies have moved beyond experimental stages to become integral components in policy underwriting and claims management. Such technological advancements allow for real-time data analysis, drastically improving decision-making capabilities within enablers.
What have been the trends in mortality rates among insurtech companies within different countries, and what factors influence these rates?
Mortality rates among insurtech companies vary, with notable improvements in Brazil and Chile. Several factors influence these rates, including regulatory environments, company size, market focus, and investor confidence. Effective risk management practices and innovative partnerships also play vital roles in reducing mortality rates and promoting overall sustainability within the sector.
Why do you think internationalization rates have increased by 36% in the first half of 2025? Which countries are leading these internationalization efforts? What is Peru’s role in driving internationalization among insurtech companies?
The increase in internationalization rates reflects a mature market seeking growth beyond national borders. Countries like Peru lead these efforts, driven by ambitious strategies to expand business models and market reach. Peru’s proactive regulatory adjustments and strong entrepreneurial spirit make it a leader in facilitating internationalization. Its role as a hub for cross-border operations underscores how countries can transform domestic challenges into opportunities on the international stage.
What strategies are regional associations employing to support cross-border expansion?
Regional associations are pivotal in supporting cross-border expansion by fostering a cooperative environment that facilitates operational synergies across borders. They offer critical infrastructure support, streamline regulatory compliance processes, and organize networking events that encourage collaboration among companies. Associations also provide platforms for sharing best practices and innovations that help firms adapt seamlessly to diverse market environments.
Can you describe the increasing attraction of foreign companies to markets like Colombia, Peru, and Mexico?
Foreign companies are increasingly drawn to markets such as Colombia, Peru, and Mexico due to their expanding consumer bases and favorable economic conditions. These countries present ample opportunities for growth, innovation, and strategic partnerships. Additionally, their progressive regulatory frameworks and thriving ecosystems attract foreign insurtech firms looking to tap into new market segments and drive further regional development.
How have sector specializations, particularly in mobility, influenced investment patterns?
Sector specializations like mobility have significantly influenced investment patterns, capturing considerable attention and funds. The focus on mobility reflects a broader interest in leveraging technology to address urban challenges and insurance needs related to transportation. This specialization has not only spurred innovation but has also drawn in investors seeking to capitalize on the evolving intersection of technology and mobility insurance.
What roles are traditional insurers and brokers playing in facilitating the transformation of the insurtech sector?
Traditional insurers and brokers are key in the transformation of the insurtech sector by forming strategic partnerships with technology companies to integrate and expand their service offerings. They facilitate the transition by adopting digital solutions, improving customer engagement, and increasing insurance coverage. Their involvement ensures a smoother convergence of traditional and digital practices, thus promoting a more holistic industry evolution.
How do partnerships between insurers and insurtech firms enhance operational efficiency and customer experience?
Partnerships between insurers and insurtech firms enhance operational efficiency by integrating advanced technologies and streamlining processes. This collaboration allows for more refined risk assessment and quicker claims processing. From a customer experience perspective, these partnerships lead to more personalized and responsive service offerings, catering to specific customer needs and thereby fostering greater customer satisfaction and loyalty.
Can you expand on Hugues Bertin’s statement regarding the healthy internationalization rate as an indicator of ecosystem health?
Hugues Bertin’s statement highlights that a healthy internationalization rate signifies a robust and dynamic ecosystem where companies can thrive beyond their domestic markets. This rate reflects confidence in the regional market’s potential and adaptability. As insurtech firms venture into new territories, they contribute to the diversity and resilience of the industry, which in turn attracts more global players and investments.
What challenges do single-country insurtechs face compared to their international counterparts?
Single-country insurtechs often face limitations in growth potential and market size, which can hinder scalability and innovation. They may also struggle with resource constraints and heightened competition within their domestic markets. In contrast, international counterparts benefit from expanded resources, diversified risk exposure, and greater insights into varying consumer demands, enabling them to innovate and adapt more effectively.
In what ways has the insurtech ecosystem become a crucial part of the transformation within the insurance industry?
The insurtech ecosystem has emerged as a vital component in transforming the insurance industry by driving innovation and facilitating the integration of technology. Insurtechs have challenged traditional practices, ushering in a wave of customer-centric solutions and operational efficiencies. By addressing key industry pain points and promoting digital advancements, insurtech firms play an essential role in modernizing insurance delivery and enhancing accessibility.
How are collaborative efforts between various ecosystem players shaping the future of the insurance sector?
Collaborative efforts among ecosystem players foster a unified approach to addressing common challenges and leveraging shared opportunities. As insurers, brokers, and tech companies work together, they create new value propositions that redefine the industry. Joint initiatives drive innovation, improve risk management, and facilitate the co-creation of products and services, ultimately shaping a future-ready insurance sector that is agile, resilient, and customer-focused.
What is your forecast for the insurtech sector in Latin America?
The insurtech sector in Latin America is poised for continued growth and evolution. I foresee increasing international collaborations and further integration of AI and digital solutions, leading to even greater operational efficiencies and customer engagement. As insurtech gains momentum, there will likely be an acceleration in market diversification and a stronger push towards sustainable practices, ensuring the industry’s relevance in an ever-changing global landscape.
