Insurance
From The Report: Mexico 2018
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The stable growth of the Mexican economy and the low level of insurance penetration in the country are likely to continue to drive growth in the sector over 2018 and 2019. In the absence of further natural disasters the loss ratio of insurers, which rose following the 2017 earthquakes, can be expected to stabilise in 2018. Nevertheless, the rise in incidents of car theft will likely require action on the part of insurers, with a more comprehensive product design. However, new regulations and a closer management of risk should support the industry in overcoming these challenges. Incorporating emerging technology into the design and distribution of products will be key for insurance firms to stay competitive. This chapter contains an interview with Manuel Escobedo Conover, President, Mexican Association of Insurance Companies.

Articles from this Chapter

Overview

Protection drive: Insurers enhance distribution channels to improve the sector and increase penetration rates
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With high levels of employment in the informal sector and a significant section of the population living in poverty, Mexico has traditionally been a challenging market for insurers. Added to this, a high level of exposure to earthquakes, hurricanes and other natural disasters presents a permanent issue for insurance firms. This was highlighted in September 2017, when two powerful earthquakes hit the country over a two-week period, causing considerable damage. These incidents brought added scrutiny…

Analysis

Fault lines: Seismic activity calls attention to the need for improved insurance products and industry regulation
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The two earthquakes that shook Mexico on September 7 and 19, 2017 had a considerable impact not only on the country, but on the insurance industry as well. The tragic events, the most significant of their kind since 1985, resulted in the death of upwards of hundreds of people and the large-scale destruction of infrastructure and homes in Mexico City and other regions. On top of their human and material costs, these incidents highlighted the extent to which the majority of private property remains…

Interview

Align to mature: Manuel Escobedo Conover, President, Mexican Association of Insurance Companies (Asociación Mexicana de Instituciones de Seguros, AMIS), on structural and institutional changes
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Interview :Manuel Escobedo Conover In what ways can public sector strategies be coordinated to boost risk management? MANUEL ESCOBEDO: We aim to achieve a 3.1% insurance penetration rate by 2020, to be successful, we need to strengthen dialogue and form a more solid interorganisational strategy across the sector. The public sector has an important role to play in enhancing and improving the focus on risk-management procedures, as the Mexican economy and society suffer from a lack of risk-management…

Overview

Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets – Mexico 2018
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While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries in less-developed economies. “You have nothing but opportunity: big populations and tonnes of risks,” Tom Johansmeyer, assistant vice-president of property claim services at ISO Claims Analytics, a division of Verisk Insurance Solutions,…