Mexico insurance industry expected to handle the impact of Hurricane Patricia

Hurricane Patricia 2015 Mexico

A.M. Best provides some insight into Mexico’s insurance industry

A.M. Best, a rating agency based in the United States, has issued a comment concerning Mexico’s insurance industry and how it may be impacted by Hurricane Patricia. The powerful storm formed alarmingly quickly in the Pacific ocean and was the strongest hurricane ever recorded, with sustained winds recorded in excess of 200 miles-per-hour. While the storm dissipated quickly once making landfall, there are still serious concerns regarding flooding and the damage that heavy rainfall has caused.

Insurers are expected to be able to handle the impact of world’s most powerful hurricane

A.M. Best expects that that the insurance industry will see the greatest impact from wind damage and fallen trees. Flooding is, of course, a concern, as such disasters can cause significant damage, but many insurers do not offer flood protection. Insurers are expected to be able to handle the disaster effectively, however, as there are regulations in place to mitigate their risks. Mexican insurers are also required to have financial reserves in order to adequately handle natural disasters and these reserves are expected to play a role in recovering from Hurricane Patricia.

Insurers are working to determine the ultimate impact of Hurricane Patricia

Hurricane Patricia 2015 MexicoThe ultimate impact of Hurricane Patricia has not yet been measured. Insurers are still working to determine the extent of the damage that the storm has caused, with adjusters working in the areas that were most affected by the storm. Mexico is not the only country that has been affected by Hurricane Patricia, of course, as the storm made its way to Texas as well.

Texas has also been affected by Hurricane Patricia

In Texas, the storm brought relatively heavy rainfall, which has lead to some instances of flooding. Floods have lead to some roads being closed due to safety concerns. Though Hurricane Patricia has lost much of its strength while traveling through Mexico, the storm is still accompanied by strong winds, which can cause significant damage as the storm continues along its path through the United States.

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