Monday, December 11, 2023

La Jornada – ‘Otis’, among the 10 worst disasters in the Mexican insurance sector

Mexico City. The storm Otisthe worst hydrometeorological phenomenon to hit Guerrero, since reaching category 5, the highest of the Saffir-Simpson scale, and with strong winds and heavy rains it caused damage to properties and infrastructure in the area , therefore included in the 10 most expensive catastrophic events in the history of the insurance sector in Mexico.

“According to records from the Mexican Association of Insurance Institutions (AMIS), Pauline covered about 1,766 million pesos in insured assets when it hit the coast of Guerrero in 2007.

Otis This is likely to be on the list of the 10 most catastrophic events in the sector,” predicted Norma Alicia Rosas, general director of AMIS.

The extent of the damage caused by the typhoon Otis in Guerrero last week can be compared to the amount paid by the Mexican insurance sector for Hurricane Wilma in Quintana Roo in 2005, which is, until now, considered the most destructive hurricane and the second most severe catastrophic event for insurers, with compensation. more than 2.6 billion dollars.

AMIS revealed that in Acapulco there are around 16 thousand properties and 20 thousand vehicles that are insured.

According to data from the Mexican Association of Insurance and Bond Agents (Amasfac) and the Mexican Association of Insurance Institutions, Wilma was for a long time the biggest accident in the country, until the covid-19 pandemic came, with more than 3.4 billion dollars. .

The damage is yet to be measured. Otisbut it can be compared, with updated amounts, to 2.5 billion dollars paid for Hurricane Wilma in Cancun, stated Jorge Valladares, national president of Amasfac.

For its part, the rating agency Moody’s estimates that the insurance sector will bear the greatest impact from the event.

“We expect Mexican property and casualty insurers to focus on the area with losses and report negative results in 2023, which may affect their solvency indicators,” the company risks credit said in a statement.

He expects that the potential costs due to this event can be compared to that caused by Hurricane Wilma in Quintana Roo in 2005, where insurers paid about 2.7 billion dollars.

According to data from the authorities, 504,340 users were reported without electricity supply; The effects of the Mexican Seismic Alert System were also reported. In addition, it is estimated that the typhoon affected 80 percent of the hotels in Acapulco.

In the face of all these damages, AMIS endorses, the effectiveness of insurance is strengthened as a financial protection tool, because it is important to preserve people’s health, family assets, company property and productive activities in general. .

World Nation News Desk
World Nation News Desk
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