The Mexican government is strengthening its commitment to protecting the population from natural disasters by renewing its 2026–2027 catastrophe insurance programme and doubling the insured sum to 10.4 billion pesos (US $596.3 million).
According to a government announcement, the renewal will expand the State’s capacity to protect public assets and provide timely assistance to people affected by natural phenomena.
The coverage reportedly extends across the entire national territory against earthquakes, volcanic eruptions, hurricanes and floods of medium to high severity, effective from 5 June 2026 to 5 May 2027.
The insurance comprises two components: a Loss Management Fund of 400 million pesos (US $22.94 million) and parametric insurance of 10 billion pesos (US $573.4 million).
This insurance, provided by Agroasemex, S.A., forms part of a risk management strategy promoted by the Mexican Government to protect federal public assets.
It includes asset insurance for agencies and entities of the Federal Public Administration, as well as the Catastrophe Bond, and complements the budgetary resources of Branch 23 allocated to protecting the population and addressing the effects of natural phenomena.
Mexico last accessed the catastrophe bond market in May 2024, when it obtained $420 million of parametric protection against earthquakes and Atlantic hurricanes from the capital markets via the IBRD CAR Mexico 2024 catastrophe bond, along with an additional $175 million of parametric coverage for Pacific named storms through the IBRD CAR Mexico 2024 (Pacific) transaction.
This $595 million parametric catastrophe bond-backed disaster insurance remains in force until April 2028. Read more from our sister publication, Artemis.
