M7.1 Mexico earthquake causes major destruction

The magnitude 7.1 earthquake that struck near Mexico City on Sept. 19 afternoon has caused major damage, according to a Sept. 20 AM Best report.

The full extent of the damage is unclear but appears to be major, as dozens of collapsed buildings, burning structures, and widespread rubble were seen in the capital, as well as in the Puebla city of Cholula and elsewhere, the ratings agency said.

Eyewitnesses reported widespread property damage in Mexico City as buildings swayed intensely. Casualty figures continue to rise as rescue efforts are just beginning – early reports note 200+ fatalities.

Glass has popped out of some buildings, and gas leaks had permeated the air in the capital. The city’s international airport temporarily suspended operations so that structural damage could be evaluated.

Mexico City was constructed atop a lakebed, making it susceptible to significant motion as the result of earthquakes, as it was in 1985.

Among the most exposed insurers to Mexican nat cat events are AXA Seguros with a market share of 12.8 percent, followed by Seguros Banorte Generali with 9.9 percent and Seguros Inbursa with 8.9 percent, according to AM Best 2016 figures. Other insurers with significant exposure include Grupo Nacional Provincial, MAPFRE Tepeyac and Grupo Mexicano de Seguros.

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