- Large amount of capacity in the local market due to high treaty limits from companies such as Allianz, Chartis, ACE, GNP, AXA, MAPFRE and RSA.
- Capacity is based on PML and/or type of risk.
- Appetite for all occupancies except textiles, plastics, pulp and paper and beachfront risks.
- US$50 million PML basis.
- In general flat and/or reductions but increase in rates for those risks in CAT zones, or with poor loss history.
- The AMIS (Mexican Association of Insurance Companies) statistics show that in 2008 the loss record decreased 25% in respect to 2007. In 2009, first half loss record decreased 8.35%.
- Special deductibles and coinsurances for windstorm and wind/flood perils and earthquake.
- Sublimits and limited coverage for goods in the open.
- Average US$30 million.
- There is risk appetite in general, except for advanced loss of profits (ALOP).
- Non-CAT zones: Reductions of 0% to 10%.
- High CAT zones: Increases of 0% to 15% according to contractor’s loss experience and the period of the policy.
- Special deductibles and coinsurances for hydrometeorological phenomena (windstorm, hurricane, wind driven rain, etc.).
- Chartis, ACE, CHUBB provide good capacity in addition to the London market.
- London market still competitive against local markets.
- Same wordings as those used by London (T3, T3A).
- The market is starting to use the LPO437 and LMA3030 wording.
- US$10 million capacity on average.
- Lack of business interruption capacity especially for local companies in the market.
- Statistics show that 2008 loss record decreased 99% in respect to 2007.
- The 2009 first half loss record increased 5% in respect to the same period in 2008.
- Very good capacity in local markets Chartis, ACE, Zurich and GMX.
- Lack of appetite for pollution and export products liability, specialty for automotive products, hotels and food industry.
- Statistics show that 2008 loss record decreased 30% in respect to 2007.
- The 2009 first half loss record increased 143% in respect to the same period in 2008.
- There are some competitive markets for local GL coverages.
- The form is on an occurrence basis for all coverages except claims made basis for products abroad.
- Chartis is the market leader and has 90% of the market. They offer up to US$30 million.
- ACE has US$25 million and Chubb has US$25 million. Some programs are placed in London and European Union market using a local insurance company as fronting.
- Recently Zurich has become a new player with a capacity of US$10 million.
- It depends on the limit and financial situation of the company, but premiums are between US$15,000 and US$150,000.
- Entity coverage includes coinsurance of 10% or 15%.
- EPL for company is not available.
- Deductibles are from US$100,000 to US$250,000 for securities claims.
- Main markets: Chartis, Chubb, ACE, Zurich and GMX.
- More policies are being placed in Mexican market, now that more capacity and expertise are available.
- Coverage is being purchased mainly by accounting and auditing firms.
- Engineering and architectural firms are also growing.
- It depends on the limit and class of business.
- For accounting firms, premiums are high.
- On average, the limit is US$1 million and the premium is US$80,000.
- Claims made policies. Deductible is 10% of losses.
- In Mexico most of the banks are in global programs.
- There are a few local programs placed with Chubb and Chartis, each with a capacity of US$25 million.
- ACE has a capacity with US$10 million.
- Premiums for programs with limit of US$10 million are US$200,000 approximately.
- Includes transit and electronic data fraud.
- Deductibles from US$10,000 to US$100,000.
- This is a growing line of business. Premiums are still low.
- Chartis has US$5 million of local capacity and US$25 million with authorization.
- ACE has US$10 million and Chubb has capacity of US$10 million.
- Low premiums. On average, the limit is US$1 million and the premium is US$40,000.
- Growing.
- Electronic fraud has been presented in some cases.
- Chartis is beginning to take a more rigorous approach and conditions are hardening.
- High deductibles, electronic data coverage, and subjectives like vacation days, functions severability and survey studies.
- Retroactive date for first policy is available.
- High capacity, high risk appetite from insurers like Chartis, Zurich, Chubb, Allianz, ACE and RSA.
- Costs are flat for risks with a good loss record and increasing for those with poor loss experience.
- Statistics show that in 2008 the loss record increased 11% in respect to 2007.
- For 2009 the record was not good due to the economic situation in Mexico.
- Premiums are decreasing due to budget or sales reductions.
- On the other side, losses for theft and assault are increasing.
- Market in general beginning to harden for theft and assault, including schemes with triggers.
- Clients are asking for options in deductibles to obtain better costs.
- For commercial airlines there is no local capacity.
- Most of the accounts go to the facultative reinsurance markets.
- For general aviation, the average top capacity available is hull (US$20 million) and liabilities (US$50 million).
- The rates vary wildly between different risks, depending on aircraft type and age, pilots, uses, etc.
- For aviation liability risks it varies as well, depending on whether there are ticket holding passengers or not.
- The recent claims trend in the airline sector is driving up renewal costs as much as 30%.
- On average, the most representative general aviation risks would be a corporate jet with a hull value between US$1 million and US$10 million, not more than 15 years old with good pilots and loss experience.
- The average hull rate would be between 0.3% and 1.2% of hull value and US$25,000 for full liabilities.
- There is no official loss record for the Mexican aviation market, the only official information is aggregated with marine, so it could be misleading.
- Generally, conditions follow the London and U.S. aviation markets, with almost no exceptions, as most of the aviation capacity in Mexico comes from reinsurance XL aviation contracts or reinsurance facultative placements.
- Managed by London Markets
- Main markets: Atradius, Coface, Euler, CESCE, MAPFRE.
- Appetite for some specific industries: pharmacy, food, beverages and communications.
- Rates average from 0.2% to 0.5% applicable to sales.
- Official loss information is not available but local markets understand the loss history to be high.
- Insolvency, protracted default and political risk for exportations policies are available.
- No deductible.
- Managed by London Markets
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