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Mexico Presses Insurers on Price Hikes as New VAT Rule Takes Effect

Sheinbaum asked the Finance Ministry to police pricing following a rule that turned VAT on claim payments into an insurer cost.

Overview

  • The 2026 revenue law bars insurers from crediting VAT paid on repairs and indemnities, converting a previously recoverable tax into a direct expense.
  • President Claudia Sheinbaum said premium increases should not occur automatically and requested that Hacienda monitor company pricing decisions.
  • AMIS said it is premature to generalize about premium changes, stressing that any adjustments will be determined by each insurer’s products, risk and costs.
  • Milenio reported early‑January increases, citing a 35% rise for taxi and app‑driver policies and about 25% for private policies, while a THB México executive estimated overall hikes near 15%–20%.
  • The government allowed 2025 liabilities to be paid in installments during 2026 without penalties after resolving past retroactive VAT claims under the new framework.