Mexico to offer microinsurance against earthquakes and floods

Insurance companies in Mexico will offer a microinsurance product against earthquakes and meteorological risks to low-income families, according to Reforma newspaper.

The first stage of the project will include coverage for damage of 15,000-30,000 pesos (US$996-1,993) with an annual cost of 1,200-3,000 pesos. Insurers will present a proposal to the government in August or September.

The microinsurance would be funded partly by the state and by families, according to Luis Álvarez, director of the local insurers association Amis, who was quoted by Reforma.

The new product is not aimed at those in extreme poverty, which already have coverage provided by the Fonden fund against catastrophic risks.

Another proposal to be presented by Amis is to provide health insurance for the 19mn Mexican citizens who lack any kind of health coverage.