Introduction to the Mexican Insurance Sector’s Preparation
Ricardo Rosado Mañón, President of the National Council of Directors of the Mexican Association of Insurance and Reinsurance Agents (Amasfac), stated that the Mexican insurance sector is well-prepared to face the upcoming hurricane season. This declaration was made during the kickoff of the rainy and hurricane season, alongside the inauguration of the 34th Ibero-American Congress of the Confederation Panamericana de Productores de Seguros (Copaprose).
Background on Recent Hurricane Impact
Rosado Mañón reminded the audience of Mexico’s challenging experiences with hurricanes, such as Hurricane ‘Otis’ in 2023, which caused significant damage in Acapulco. He emphasized the growing threat posed by hurricanes due to rising ocean temperatures caused by global warming.
Growth in Hydrological Risk Insurance Premiums
Mónica Estrada Neiszer, National Secretary of Amasfac, explained that insurance premiums for hydrological risks have increased by 8-9% annually over the past few years. This growth rate is lower than other sectors, such as major medical expenses or auto insurance.
New Insurance Products for Hydrological Risks
Rosado Mañón highlighted that the insurance sector is actively developing new products to address the rising frequency of hydro-meteorological events. These innovative offerings include parametric insurance, which provides faster claims processing and more tailored coverage.
Comprehensive Coverage through Combination of Insurance Policies
Estrada Neiszer further elaborated that the insurance industry is working on combining various coverage options to provide more robust protection for individuals and businesses. For instance, a condominium in Acapulco could have four distinct insurance policies simultaneously: a parametric policy, coverage for common areas, condominium coverage, and individual homeowner policies.
Key Questions and Answers
- What is the Mexican insurance sector preparing for? The Mexican insurance sector, led by Amasfac, is gearing up for the upcoming hurricane season.
- Why is the insurance sector focusing on hydrological risks? There has been a significant increase in hydro-meteorological events, prompting the insurance sector to develop new products and coverage options for these risks.
- What are parametric insurance policies? Parametric insurance policies offer faster claims processing and more customized coverage for specific events, such as hurricanes.
- How can individuals and businesses benefit from combined insurance policies? By bundling various coverage options, individuals and businesses can achieve more comprehensive protection against diverse risks.
