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Mexico Finance Ministry: No Immediate Case for Insurance Premium Hikes After VAT Rule Change

The tax change limits insurers’ ability to credit VAT on some claims-related services.

Overview

  • Finance Secretary Édgar Amador said the transitory article in the 2026 revenue law is a technical clarification and does not authorize automatic increases in insurance prices.
  • Effective this year, VAT that insurers previously credited on certain services used to indemnify policyholders becomes a direct cost for companies.
  • SHCP said premiums will be set by supply and demand, sees no conditions for immediate increases, and will monitor the sector without issuing a price‑freeze directive.
  • AMIS stated it is premature to estimate how the fiscal adjustment will affect premiums and cautioned against generalized assumptions.
  • Brokers, agents and policyholders report higher quotes and renewals in 2026—especially in major medical and auto lines—with some increases reported in the 20% to 35% range, even as the presidency frames the reforms as part of an anti‑evasion push.