Insurtech funding in LatAm dipped in 2024 but number of startups continues to rise: MAPFRE

According to the ninth edition of the LatAm Insurtech Journey, developed by Digital Insurance LATAM and sponsored by MAPFRE, the Madrid-based insurer, annual investment in the sector fell by 38% compared to 2023, reaching only $92 million, although the second half of the year saw a 156% increase compared to the first half, suggesting a positive outlook for 2025.

The Latin American insurtech ecosystem closed 2024 with more than 500 insurtechs, despite low investment in the annual computation of venture capital investment.

There are 502 startups in the region, amounting to a 2024 growth rate of 5%, achieving an average of 12% since 2021.

According to the report, the rate of attraction of foreign insurtechs stands at 29%, while international expansion is growing by 23%, with an internationalisation rate of 15.9% led by the ecosystems of Chile at 32% and Peru at 50%, due to their scalability needs.

Out of the whole insurtech ecosystem, 51% is dedicated to digital distribution, while 49% is an enabler and collaborates with re/insurers and intermediaries.

Hugues Bertín, Chief Executive Officer of Digital Insurance LatAm & President of Pan-American Insurtech Alliance (AIP), commented, “This has been a year of resilience and learning. A strong correlation is observed between the growth in the number of insurtechs in a country, their internationalisation, and the presence of solid and collaborative insurtech partnerships with the traditional sector.

“The fact that both indices [internationalisation and attraction] continue to grow marks two trends: insurtechs with a good value proposition move quickly; and those that are ‘out of Latam’, like the multinationals, consider Latin America as a single large market.”

Carlos Cendra, Scouting & Investment Lead at MAPFRE Open Innovation, added, “The increase in funding over the second half of 2024, together with the continued growth in the number of startups, shows the strength of the ecosystem and the region, which is firmly convinced of the potential of the insurance industry.

“We have started 2025 with new announcements of financing rounds, such as those of Sami and Olé Life. This seems to indicate that in 2025 we will see a positive trend in the figures, although we must keep an eye on the global situation of venture capital and how possible fluctuations can affect Latin America.”

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