AMIS updates industry impact of Mexico's 2017 quakes

By
Tuesday, March 13, 2018

In its latest update on damage the two earthquakes in September 2017 caused, Mexican insurer association AMIS said 42,795 related claims have been filed generating a total cost of around 25.1bn pesos (US$1.35bn).

Of the total, 80% corresponds to impacts from the quake that struck central Mexico and Mexico City on September 19, with 33,961 filed claims. The remaining 20% reflect 8,834 claims associated with the stronger quake on September 7 that hit more rural Oaxaca and Chiapas states.

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A breakdown of claims by segment reflects the significant variation in the kinds of coverage in impacted zones.

With the September 19 event, 57.2% of claims were tied to optional coverage for residential properties, followed by 19.4% for quake coverage in mortgage contracts. Following these were business claims (7.7%), office buildings (4.8%), and industrial (3.9%), government (1.48%) and health care properties (1.3%).

Looking at claims related to September 7, industrial properties represented 28.9%, followed by government buildings (20.9%), optional residential coverage (17.2%), businesses (16.8%), office buildings (4.1%), mortgage-linked residential coverage (3.7%) and hotels/accommodations (2.6%).

AMIS stressed that although Mexico finds itself at constant risk to seismic events, only 6.5% of homeowners have coverage that addresses such threats.

It added that 41% of the territory and 31% of its population are exposed to multiple natural disaster threats, including hurricanes, tropical storms, earthquakes and volcanic eruptions, and more than 66% of the country is exposed to at least one of these natural threats.

AMIS noted that 30% of GDP is exposed to three or more of these risks, while 71% of GDP is vulnerable to two or more.