« Cat Bond » : le Mexique ne sera pas indemnisé

The natural phenomena of seismic tremors are growing to such an extent that certain organizations have thought of anticipating the evil by creating insurance funds to take charge of these natural disasters and to compensate in some way the States victims of these disasters. .

Definition of Cat Bonds

Etymologically, the Cat Bonds of English origin are taken from catastrophes bonds, which means in French obligations catastrophes. Cat Bonds are actually insurance policies that are put in place to protect victims of hurricanes, tsunamis, earthquakes and the like. Insurance companies issue and manage these financial products. These Cats Bonds cover damage caused and financial losses that occur during natural disasters such as volcanic eruptions, tidal waves, hurricanes, etc. These types of contracts are added to the list of many existing contracts for insurance and claims management.

Victim, but not taken into account

Mexico is part of the area affected by the recent earthquake, but unfortunately this country will not be able to enjoy the fruits of compensation given the scale of magnitude that has hit the country. The magnitude of the earthquake was less than the standard required for consideration in the process. It may hurt, but it’s the harsh reality. Mexico will not receive a franc despite the fact that it was hit hard by an earthquake last weekend. The catastrophe bond set up for its benefit by the World Bank will not find the right to quote. This mechanism set up for four Latin American States could not be set in motion.

The epicenter is however in a covered area

Catastrophe bonds are subject to very strict monitoring and supervision. It is not enough to be a victim, all the conditions must be satisfied. The compensation rules meet very specific standards. As in this case, although the epicenter is in the state of Oaxaca, Mexico will not be able to benefit from the financial compensation since the earthquake was not violent enough to be taken into account. There are therefore seismic standards that must be respected for the victims to be taken care of by the Cat Bonds. Yes victim with an epicenter in the area covered, but not compensated. Since last Friday, Mexico suffers its pain with its victims. It didn’t take long. According to seismic data collected by geologists, the quake had a magnitude of 7.2,