At the moment, Mexico’s insurance sector constitutes roughly 2.1% of the country’s gross domestic product (GDP). But with only 30% of vehicles insured, Mexico lags behind Chile (100%), Brazil (75%), and even Nicaragua (60%) according to Charlotte Serres of AXA Mexico. Meanwhile, road accidents costs amount to 1.7% of GDP with 15,856 people dying on the road annually.

One of the reasons behind low insurance rate is a complex mechanism of validating car insurance policy to comply with legislation standards. In their session at #D1Conf in Cancun, Charlotte Serres of AXA Mexico and Agustin Aramburu of Kayum shared how the Mexican Association of Insurers is tackling this problem with the blockchain technology to create a public, anonymous, and in-force policy record. The aim of the project is to provide authorities with a decentralized solution that simplifies the inspection of insurance compliance and improves key industry processes along the way.

Charlotte Serres of AXA Mexico at D1Conf

“Insurance represents just over 2% of GDP in Mexico, and this is the threshold that we’ve only recently passed. And it’s relatively low in comparison to other regions. And then you have such countries as Chile, for which insurance makes up about 5% of GDP. And if we compare with other regions’ markets, you have Brazil with over 3% and China with above 3%. So, what I mean to say is there is a huge opportunity to increase insurance penetration and protection in the country.”

— Charlotte Serres, AXA Mexico

Agustin Aramburu highlighted major concepts underlying the blockchain-powered solution they’ve built to ensure transparent and secure validation of insurance policies.

Agustin Aramburu of Kayum at D1Conf

“It’s not about the technology, it’s not about blockchain — it’s about protecting people with the best technology available. And we think we were able to achieve that.”

— Agustin Aramburu, Kayum

Blockchain seems to bridge the gap between insurance companies and governmental agencies in this very case, providing room for further improvement not only in the services offered, but more importantly in the life standards.

For more details, watch the video below.

Table of Contents

An overview on an insurance market in Mexico (01:00) The drastic canvas of vehicle insurance in Mexico (01:51) The gap between legislation and insurance (05:16) How blockchain can help to improve the insurance scene (06:40) Q&A. What are the reasons behind low rate of insurance in Mexico? (12:40) Q&A. What is the level of readiness to adopt blockchain in Mexico? (13:11)

Check out the slides by Charlotte and Agustin