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Although the sector’s medium-term growth is likely to be impeded by weak economic conditions, the Mexican Association of Insurance Companies forecast that total premium would rise by 3.4% in 2019, though downgrades have been made in subsequent forecasts. This is likely to weigh most heavily on the non-life segment due to the impact of fiscal austerity on government spending. The life segment, meanwhile, is expected to continue to perform well, but its expansion will still be constrained by the weaker labour market. In the longer term, economic recovery and increases in real wages are expected to gradually reduce poverty rates and broaden the potential market for both life and non-life plans. With insurance penetration still only around half the level of the more advanced Latin American countries, there is significant scope for growth in the years ahead. This chapter contains an interview with Mario Vela Berrondo, CEO, Prudential Insurance México.

This chapter introduces the reader to the different aspects of the legal system in Mexico in partnership with Maillard, Cerbón, Canudas, Argumedo, Palma y Asociados; and Aguirre, Aguirre and Associates. It also contains a viewpoint with César Maillard Canudas, Managing Partner, Maillard, Cerbón, Canudas, Argumedo, Palma y Asociados.

In conjunction with Deloitte, this chapter explores the taxation system and Mexico’s efforts to build an investor-friendly environment. It also contains a viewpoint with Ricardo González Orta, Partner, Deloitte México.

The move towards digitalisation and ongoing efforts to close the gap between urban and rural access to education could provide greater opportunities for Mexican youths. As part of the Fourth Transformation, President Andrés Manuel López Obrador (AMLO) redesigned the education reform that was introduced by the previous administration. Consequently, significant changes are expected to be introduced to the country’s education system. AMLO has promised to continue working towards universal access to quality, free education at all levels. Moreover, increased investment in STEM-related subjects and greater vocational training opportunities offer bright prospects for young graduates entering the job market. However, it is unclear how effectively AMLO’s reform will increase investment in education, and whether the challenges that face education quality will be addressed in urban and rural areas.

Although the country is moving closer to achieving its ambitious goal of universal health insurance coverage for all Mexican citizens, some obstacles still remain. The public health sector will require greater investment to meet key objectives set out in the National Health Plan 2019-24, while the question of how to address the rural-urban divide remains. Neither of these problems will likely be helped through increased budget cuts at the national level. The pharmaceutical and medical devices industries remain potential bright spots as multinational companies move their practices to Mexico to avoid import duties. Meanwhile, efforts to boost the private insurance penetration rate presents an investment opportunity that could help strengthen the industry. This chapter contains an interview with Rodrigo Puga, Country Manager, Pfizer.

Both the current and previous administrations have shown a commitment to updating and expanding the capacity of the transport system. Nevertheless the country is facing increasing overcapacity at its ports, rural roads remain unpaved and developers are struggling to find suitable locations for new warehouses. Certain segments face specific challenges, notably in terms of security concerns for road freight. With rising domestic consumption and a growing manufacturing sector, demand for Mexico’s transport network appears set to rise further over the medium and long term. Therefore, addressing these challenges and charting a clear policy path, one that combines public investment with policies designed to increased private sector involvement in transport, will be necessary for the ongoing growth of the sector. This chapter contains interviews with Aby Lijtszain Chernizky, Executive President, Grupo Traxión; and José Zozaya, CEO, Kansas City Southern México.