INSURANCE SECTOR REPORT: United we stand

INSURANCE SECTOR REPORT: United we stand

Mexico

With a large number of very small firms, Mexico’s insurance industry could be on the cusp of a wave of regulatory-driven mergers and acquisitions, says Fitch analyst Franklin Santarelli. As Mexico advances new insurance regulations, in line with revised global standards, the costs of compliance are set to stack up for the companies under review. It will take a particular toll on the smaller ones — of which there are many. There are slightly more than 100 insurance companies operating in Mexico, of which just nine have more than 4% market share. “There is a group of companies that may manage $48 million [of premiums] in a year, or even less,” says Santarelli. “For those companies there’s

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