Introduction
Mexico, in 2024, ranked among the countries most affected by natural phenomena, with substantial economic losses. The vulnerability intensified in a nation where September is associated with devastating earthquakes, and recent rains caused flooding in various regions.
Hurricane Helene became the most costly event globally this year, while Milton left considerable damages in infrastructure and entire communities.
The Importance of Real Asset Value
In this scenario, safeguarding corporate assets becomes crucial. According to Tasvalúo, having a policy of insurance is not enough; it’s also necessary to ensure that the declared value of assets corresponds to reality. An outdated valuation can make the difference between recovery and financial collapse for a company after an incident.
“Imagine a fire occurs in an industrial plant, and the insurance policy does not reflect recent expansions or remodeling. The insurance only covers the originally declared amount. A valuation for insurance purposes allows companies to contract fair and accurate policies aligned with the real value of their assets,” explained Diana Muñoz Grande, a consulting specialist at Tasvalúo.
According to the firm, the concept of “insurable value” defines the amount a policy supports an asset in case of damage or loss. Keeping it updated is critical for the coverage to function effectively.
Muñoz emphasized that regularly reviewing valuations is still not part of the corporate culture for many companies in Mexico. Most only discover the consequences when facing an unexpected event.
Why Real Value Matters
Muñoz pointed out that insurable value allows companies to contract policies according to the real value of their properties and fixed assets. If a company has invested in expansions or remodeling, but the insurance maintains the original amount, the support becomes insufficient.
Examples abound: an industrial plant fire, a theft affecting newly acquired machinery, or a collapse caused by intense rains. Each case exposes the gap between what’s insured and what’s truly invested.
That’s why periodic valuation updates function as a financial shield against natural phenomena and operational risks.
Strategic Value of Valuations
Apart from their relationship with insurers, valuations have strategic value for corporate decision-making. Having accurate information about real estate holdings and fixed assets offers greater certainty when planning new investments, seeking financing, or evaluating the viability of expansion projects.
Mexico faces a dual reality. On one hand, the frequency and intensity of natural disasters increase, exposing companies to more severe losses. On the other hand, there’s a gap in coverage that limits recovery capacity.
The World Bank noted that inadequate coverage is one of the main vulnerability factors in emerging economies.
In this context, the valuation for insurance purposes, according to Tasvalúo, stops being an administrative procedure and becomes a resilience mechanism.
Key Questions and Answers
- What is the issue highlighted in the article? The article discusses how outdated valuations expose companies to insufficient coverage after natural disasters and operational risks in Mexico.
- Who is Diana Muñoz Grande, and why is she relevant? Diana Muñoz Grande is a consulting specialist at Tasvalúo. She emphasizes the importance of regularly updating valuations to ensure proper insurance coverage and alignment with real asset values.
- What is the concept of “insurable value”? Insurable value defines the amount a policy supports an asset in case of damage or loss. Keeping it updated is critical for effective coverage.
- Why are regular valuation updates important? Regularly updating valuations functions as a financial shield against natural phenomena and operational risks, ensuring proper insurance coverage.
- What is the strategic value of valuations for companies? Valuations provide accurate information about real estate holdings and fixed assets, offering greater certainty when planning new investments, seeking financing, or evaluating expansion projects.
