At the time of writing the latest life insurance market report for Mexico, the world was dealing with the COVID-19 pandemic. In Mexico, by mid-December 2020, more than 1.2 million cases of COVID-19 had been reported, and almost 114,000 deaths. According to market sources, there is no exclusion for pandemic risk in life insurance contracts.
The number of claims under life policies for COVID-19 deaths rose to 30,729 in late November 2020, with the average cost of each claim being MXN 217,463 (USD 9,458). An impact of the pandemic is the acceleration of the trend towards digitisation. Insurers and intermediaries have been required to use technology to interface with new and existing customers, for example, through apps for quotations and sending documents electronically, as well as procedures such as underwriting. With an estimated 40% of the Mexican population under age 40, distribution through digital means offers a substantial potential for growth.
The pandemic has also brought the importance of insurance cover to the public's attention, with some increased demand for life and medical expenses insurance being noted.
With an estimated 40% of the Mexican population under age 40, distribution through digital means offers a substantial potential for growth.