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Mexico Insurers to Set 2026 Prices After VAT Credit on Claims Is Ended

The change ends years of tax disputes, with the burden concentrated in auto, major medical, certain damage lines.

Overview

  • Congress approved the measure disallowing VAT credits on claim indemnities from 2025 onward, with publication pending in the 2026 Miscelánea Fiscal in the Official Gazette.
  • AMIS says pricing for 2026 will be set company by company rather than through an industry-wide move.
  • Specialists estimate premiums could rise by up to about 16% next year as firms adjust to higher effective costs.
  • A temporary fiscal stimulus lets insurers pay 2025 obligations in installments during 2026 without fines, surcharges or interest.
  • Sector data show roughly 8% real growth in 2025, with January–September premiums near 770,212 million pesos and payouts of 414,187 million after a year of costly storms.