Otis Costs Reach $2.125 Billion

Otis has become the third most expensive event for the insurance industry, with total costs exceeding $2.125 billion. The insurance sector has reported that over 44,650 claims have been processed in Guerrero, the state that suffered the consequences of this phenomenon a year ago.

The costs caused by Otis are only surpassed by the expenses from the pandemic and Hurricane Wilma in 2005. The insurance industry highlights that 72% of the most compensated losses are related to hydrometeorological events, such as rainfall or hurricanes. In just the last two decades, the three most devastating hurricanes have generated costs totaling $6.5 billion for insurers. Companies like HDI have reported payments exceeding 200 million pesos in compensation for damages and vehicles. Vessels, which have been among the hardest hit after the event, have received reimbursement for 91% of their total losses. Small and medium-sized enterprises have reported 2,526 incidents with losses totaling 12.866 billion pesos. Mexico is on the list of the top 10 countries with the highest catastrophic risk due to natural phenomena, according to the United Nations (UN), and 45% of its territory is at the mercy of flooding, according to the National Disaster Prevention Center (Cenapred). It has been noted that Mexico's investment in relation to its GDP is only 3.2%, a figure that falls short compared to countries like Chile and Brazil.

It is essential that, as a society and government, we take proactive measures to strengthen our infrastructure and financial protection in the context of a country highly vulnerable to natural disasters. Increasing investment in prevention and risk management would not only protect communities but also help stabilize the economy in the face of these devastating events.