The INSURTECH Book

InsurTech in Latin America – The Promise of Insurance for Everybody?

By Denisse Cuellar

FinTech and StartUps Partnerships Manager, Banco de Creditor BCP

Talking about the insurance market in Latin America is quite a challenge because the adoption of insurance on the continent is quite low. Unlike the US or Europe, where buying an insurance policy is common and straightforward, in Latin America this is a painful process and in many cases a luxury. The insurance market represents less than 3% of the average GDP in the region, compared to more than 10% in the US and Europe; Chile and Brazil are the exceptions with slightly more than 3%. ¹ (Something important to note in understanding this region is the supremacy of car insurance: life, health, or travel insurance policies are not very attractive to the Latin American customer yet.) But change is happening. The insurance market is growing steadily in the region, and is positively changing Latin Americans’ lives.

With Internet penetration at approximately 67% and 63% for Brazil and Mexico, respectively (statisca.com), unsurprisingly, then, InsurTech adoption in the region is also very modest. Combined with low insurance penetration in the region, it is obvious that the digital revolution could only benefit the market. However, as with any market, digitization is just one consideration. Innovation is another. Although not mature and in early growth stages, Latin American InsurTech appears to be adopting a customer-centric approach. ...