The Mexican government is strengthening its commitment to protecting people from natural disasters by updating its catastrophe insurance program for 2026-2027 and doubling the amount of coverage to 10.4 billion pesos ($596.3 million).
According to a government announcement, this update will expand the state’s ability to protect public assets and provide timely assistance to people affected by natural phenomena.
According to reports, the coverage covers the entire national territory in response to earthquakes, volcanic eruptions, hurricanes and floods of moderate to high intensity and is valid from June 5, 2026 to May 5, 2027.
The insurance consists of two components: a loss management fund of 400 million pesos ($22.94 million) and a parametric insurance of 10 billion pesos ($573.4 million).
The insurance is provided by Agroasemex, SA as part of the Mexican government’s risk management strategy to protect federal public assets.
It includes asset insurance for federal public administration agencies and entities as well as catastrophe bonds and supplements the budgetary resources allocated by Department 23 to protect the population and address the effects of natural phenomena.
Mexico last entered the catastrophe bond market in May 2024, when it secured $420 million in earthquake and Atlantic hurricane parameter coverage from the capital markets through the IBRD CAR Mexico 2024 Cat Bond and an additional $175 million in Pacific named storm parameter coverage through the IBRD CAR Mexico 2024 (Pacific) transaction.
The $595 million parametric catastrophe bond-backed catastrophe insurance is in effect until April 2028. Read our sister publication Artemis to learn more.
