Demand for insurance against cartel violence surges across Mexican economy – expands from usage in leisure industry

Mexican business now demand coverage for cartel violence as part of their standard insurance package.

Demand in Mexico for insurance against cartels and other organised crime is rising as companies across a much wider range of industry sectors have started to purchase coverage as standard, says global speciality (re)insurance group Chaucer.

Demand for the insurance policy has historically been driven by companies the tourism and leisure industries, as well as multinationals with operations in Mexico. However, local businesses are also increasingly seeking cover, fearing the impact of cartel violence on their ability to do business and on direct physical damage on their property.

Chaucer says demand for cartel cover is now regularly bought for factories & other industrial sites, warehouses and toll roads.

Damage caused by cartel violence is excluded under standard Property Damage and Business Interruption policies (PDBI). However, as cartel activity increased across Mexico, business have sought additional “organised crime cover” for property damage and business interruption caused by cartel violence.

Demand for coverage has also been driven by cartel activity becoming more geographically widespread into areas that have been previously relatively untouched by cartel activity such as popular tourist areas including Cancun.

Gabriel Mayorga, Political Violence Underwriter at Chaucer, says:

*Source; United Nations Office on Drugs and Crime

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