Overview of the Situation
According to Pedro Pacheco, President of the Mexican Insurance Institutions Association (AMIS), there is currently no certainty about the impact of a new tax provision on insurance companies and premiums for policyholders. Starting 2026, insurance companies will naturally pay more Value Added Tax (VAT) due to an agreement with the government that prevents them from claiming VAT on third-party services.
Previous Tax Practice
Prior to the agreement included in the 2026 Federal Tax Income Law (LIF), insurance companies deducted the VAT they paid for services from hospitals or auto repair shops for damage repairs against the VAT their clients paid for insurance services. This created a net tax effect that allowed insurers to pay less VAT to the government.
New Tax Provision
Pacheco explained that the new law modification states this practice will no longer be possible starting 2026, making it clear that insurers can’t apply this net effect on the IVA collected from premiums, especially auto, medical expenses, and damage-related policies.
Insurance Sector Evaluating Changes
Pacheco reiterated that the insurance sector is still evaluating these changes, and there’s no certainty about how this new tax provision will affect insurance companies’ operations and policyholder prices.
Semana del Seguro 2025 Promotions
In other news, Pacheco highlighted that during the inaugural Semana del Seguro 2025 (November 3-9), some companies will offer special promotions, similar to what happens in many industries during “El Buen Fin.”
Promotions and Webinars
- Special promotions include discounts and interest-free months.
- Each insurance company voluntarily decides whether to offer these promotions.
- Webinars on various insurance sector topics will be held daily at 10 AM via AMIS’s social media channels.
- In-person events will take place at universities in Mexico City, Monterrey, Nuevo León, and Mérida, Yucatán.
To consult the activities and promotions of insurance companies during Semana del Seguro 2025, visit: https://ponteseguro.com.mx/.
Semana del Seguro Objectives
Pacheco emphasized that the goal of Semana del Seguro is to remind the public that financial stability over time requires awareness of potential economic impacts from unforeseen events, making insurance a recommended form of protection.
This edition will focus on personal lines and insurance for small and medium-sized enterprises (pymes).
