SEPTEMBER 28, 2022 10:38 AM (EDT)
Best’s Commentary: Recent Mexico Earthquakes Highlight Growing Attention to Insurance Coverage
|Inger Rodriguez |
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FOR IMMEDIATE RELEASE
MEXICO CITY - SEPTEMBER 28, 2022 10:38 AM (EDT)
Given the minor damage reported from recent earthquakes in Mexico, AM Best does not expect large insurance losses for the country’s insurance companies.
However, in its Best’s Commentary, “Minimal Insurance Losses Expected from Mexico Earthquakes,” AM Best notes that catastrophe experience in Mexico has led into a rise in insured amounts for the earthquake line of business, with a compound annual growth rate of 8.9% in gross written premiums from 2015 to 2022. The number of active policies also has increased significantly, almost doubling in 2021 and up 85% in comparison with 2015. For the two recent earthquakes, both of which had an epicenter in Coalcomán, Michoacán, much of the impact was in states with low insurance penetration. Consequently, AM Best does not expect claims activity to increase significantly owing to these events, or any ratings movement on the Mexico insurance companies it follows.
To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=324386 .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.