Insurers Acquire Workshops, Vehicles or Hospitals to Contain Costs

In his interview with El Economista, Miguel Ángel Rosas Ortiz explains that eliminating the ability to credit Value-Added Tax (VAT) on claims, resulting from a fiscal reinterpretation consolidated in the 2026 Federal Revenue Law, has placed significant pressure on insurers’ operating models in Mexico. In response, some companies are evaluating vertical integration strategies, such as acquiring or developing auto repair shops, vehicle fleets or even hospitals, with the aim of more directly controlling costs associated with service delivery. Rosas Ortiz cautions that while these strategies may offer a way to mitigate costs, they also raise competition and market access challenges, and could translate into upward adjustments to insurance premiums for end consumers.

Consult the full content of the Interview here.