- AM Best revised Mexico’s insurance segment outlook to negative due to the elimination of a VAT fiscal credit, which could erase 40% of insurers’ expected 2025 net profits.
- The VAT change will pressure profitability and increase market competition, prompting insurers to raise prices, tighten underwriting, and adjust products.
- Some customers are expected to cancel coverage due to higher insurance rates.
- Industry premium growth is slowing, with 8% expected in 2025, and top insurers are better positioned to withstand challenges, likely leading to market consolidation.
- Financial revenues are projected to decline by 8% in 2025 due to lower interest rates, adding further pressure on the industry.
Source: finance.yahoo.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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