The importance of having your insurance broker in Mexico

Have you ever wondered why it's so important that your insurance broker is physically established in Mexico? Well, this is a very important issue that should be of your interest when deciding which company you would like to look after your insurance needs.

Let’s start with the benefits and advantages that an insurance broker located and registered in Mexico has:

1) An insurance broker registered in Mexico has been through all the processes requested by the National Institute of Insurance and Financing (CNSF, for its acronym in Spanish), and because of that compliance, they have received a Mexican insurance license, which is the only valid license to sell insurance in this country.

2) An authorized insurance broker in Mexico knows the insurance industry much more in-depth and in better detail than those brokers that assist you from abroad. This is especially important when you have a claim and need assistance. And since your broker in Mexico knows the law, they are in a great position to deal with the insurance company and help you through the process.

3) In many cases, adjusters, providers, insurance departments in hospitals, or any other third-party company that is involved in your claim does not have a person to assist you in your language. So having a broker with staff that is also completely fluent in Spanish can make the difference when the language barrier is making you struggle.

4) Your insurance broker in Mexico will sell you a policy through a Mexican insurance company, whose policies have already complied with the CNSF requirements. When this happens, you are protected by many national institutions against a mishandling of your claim by third-party companies.

5) If you have a business in Mexico, your Mexican insurance policies play an important role in your tax declaration as they are a legal, valid document here.

6) In some cases, related to health insurance, if you go to a hospital for an emergency, and your insurance policy is through a company that has no operations in Mexico, the hospital may not take the payment because they do not have an established agreement with those companies, which will force you to pay upfront and submit a reimbursement. But, let’s be honest, where’s the attraction in that? Would you pay $20,000 USD out of your pocket and wait at least one month for your reimbursement without feeling the monetary hit?

7) If your broker should interfere further in your claim process, there’s not much they can do when they don’t even comply with the basic laws here or are miles away on the other side of the border. 

In many cases, people who move to Mexico part-time or full-time stay with the agent/broker they’ve been with for life, but ignore the disadvantages they have. The factors previously mentioned should help everyone make the right decision.