[August 02, 2018]

A.M. BestTV: Political Changes in Mexico Could Create Opportunities for Insurers, Say A.M. Best Analysts

In this ^A.M.BestTV episode, Alfonso Novelo, director of analytics, and Eli Sanchez, senior financial analyst, both of A.M. Best, say the change in administration in Mexico could affect the environment for health and agricultural insurance coverages, among other areas. Click on http://www.ambest.com/v.asp?v=mexicoelection718 to view the entire program.

The analysts said that the recent election in Mexico could redefine the role of the government, as well as have a big impact on Mexico insurers and the multinational companies that operate there. One pressing issue in Mexico's market is the renegotiation of NAFTA.

"At this time, the market is optimistic, since the peso has gained some ground against the U.S. dollar," said Novelo. "I believe that the renegotiation of the NAFTA agreement will have some impact on the movement of the Mexican peso in the coming months. However, as of now, the insurance industry is well-prepared to face these challenges that could arise, basically because most of the insurance companies try to avoid mismatches in terms of currency for their assets and liabilities."

Sanchez focused on the ever-present catastrophe risk in Mexico, especially in light of the earthquakes in 2017.

"At the time of the earthquakes, there was a catastrophe risk culture among insurers, which enabled them to be very well-protected by their insurance programs," said Sanchez. "Presently, those programs are well-capitalized and have regulator support. Additionally, in those areas where insurers do not participate, the government has put in place catastrophic bonds."

Recent episodes of ^A.M.BestTV include:

• European Insurers Face a Three-Sided Risk Front, Say A.M. Best Analysts: Greg Carter (News - Alert), managing director, analytics, Catherine Thomas and Mahesh Mistry, both senior directors, analytics, A.M. Best, sid insurers in Europe's insurance markets face a mixture of economic risks, which are tied to interest rates, inflation and geopolitical risks, as well as traditional insurance underwriting risks: http://www.ambest.com/v.asp?v=europeanmarket818.
• How A.M. Best Analysts Evaluate Mortgage-Related Insurance-Linked Securities Transactions: Emmanuel Modu, managing director, insurance-linked securities, and Wai Tang, director, insurance-linked securities, A.M. Best, examine how the rating agency evaluates mortgage-related insurance-linked securities transactions: http://www.ambest.com/v.asp?v=mortgageils818.
• IMCA: Account-Based Focus and Digital Strategies Are Remaking Insurance: Marketers at the Insurance Marketing and Communications Association Conference said their challenge is to keep up with fast-changing technologies, competition, branding and aligning their work with other internal departments: http://www.ambest.com/v.asp?v=imca718.
• Special Presentation on Catastrophe Insurance: The 'Cat' Grows a Longer Tail: Insurance industry experts, modelers and government officials examine the mix of litigation, legislative initiatives and governmental interventions that have changed the rules for many worldwide disaster claims: http://www.ambest.com/v.asp?v=longtail2018.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2018 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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