Mexico earthquake insured losses estimated at $200m

Catastrophe modelling firm Karen Clark & Company (KCC) estimates that insured losses for the earthquake that hit Mexico near Acapulco City on 7 September will be close to $200m. The M7.0 earthquake resulted in power outages throughout the region that affected more than a million customers, including scattered outages in Mexico City.

KCC said major structural damage has not been reported, although there have been some instances of collapsed masonry walls. Impacts are expected to be moderate with instances of structural damage to hotels and other buildings, and significant damage is likely to be restricted to vulnerable structures, such as unreinforced masonry buildings, said KCC.

The total losses – for insured and uninsured residential, commercial and industrial buildings – are estimated to be about $900m, according to the KCC Mexico earthquake reference model.

KCC said the earthquake occurred on a subduction zone where the Cocos and North America Plates converge. “In this region, the Cocos Plate subducts, or is pulled beneath, the North America Plate along the Middle America Trench. Historically, eight M7.0 and greater, and five M8.0 and greater, events have been recorded along the subduction zone since 1907,” the firm said.