Background on the Situation
In 2025, Mexican insurance payouts for claims caused by hydro-meteorological risks increased by 70%. This surge was primarily due to heavy rains and flooding in Veracruz, Puebla, Hidalgo, and other states resulting from a low-pressure system in the Gulf of Mexico during October. The disaster left 83 people dead and 17 others missing.
The Role of the Mexican Insurance Association (AMIS)
The Mexican Insurance Association (AMIS) reported that in 2025, insurance payouts for hydro-meteorological risk-related claims totaled 11,300 million pesos. Despite the absence of any major catastrophic hurricanes in the previous year, AMIS highlighted a 70% growth in compensation payments.
Impact of Rainfall and Flooding
Approximately 50% of total payments, or 5,600 million pesos, were attributed to atypical rains and flooding caused by the low-pressure system in the Gulf of Mexico. These events affected 3,226 vehicles and resulted in 5,052 reports about homes, small and medium-sized enterprises (Pymes), and other infrastructure.
- Veracruz, Puebla, and Hidalgo were the most affected states by rainfall and flooding, although San Luis Potosí and Querétaro also experienced some impact.
- The phenomenon led to 8,278 insured incidents, with 61% of them corresponding to damage policies (homes, businesses, offices, state infrastructure, etc.) totaling 4,862 million pesos in protection.
- The remaining 39% pertained to vehicle insurance, totaling 734 million pesos.
Most damage reports (excluding vehicles) occurred in residences, with 2,578 incidents resulting in 404 million pesos paid on average, covering approximately 157,000 pesos per claim. However, some cases exceeded one million pesos in covered damages.
Additionally, 2,172 incidents were recorded under “others” and “without detail,” encompassing federal and state infrastructure, as well as businesses, totaling 3,245 million pesos, according to AMIS.
Insights from AMIS Director Norma Alicia Rosas
Norma Alicia Rosas, the general director of AMIS, emphasized that the growth in insurance payouts reflects two realities: increasing climate-related damages in Mexico and growing public awareness of protecting their assets.
Being insured is not just about protecting your property; it guarantees a quicker recovery. Some businesses cannot reopen without insurance, so being covered is also a way to safeguard business continuity.
Consequences of the Rainfall and Flooding
The heavy rains and flooding in October, caused by the low-pressure system in the Gulf of Mexico, resulted in 83 fatalities and 17 missing persons across Veracruz, Puebla, Hidalgo, and Querétaro, according to the latest official figures from the Mexican government.
