Risk Drivers in a Changing Regulatory Environment in Mexico

The changing regulatory landscape for Motor Liability Bodily Injury insurance in Mexico provide a good example of how defining new risk drivers.

Traditionally, a Motor portfolio analysis uses parameters such as loss burden per vehicle, average loss frequency, IBNRs, average premium per vehicle, and the like. With these statistical data one tries to understand certain trends seen over the years, and to project these trends observed in the past to the future. This approach is perfectly legitimate, and has a clear added value for the understanding of a portfolio development. However, we believe that in addition to these parameters, risk drivers based on current and future changes, will help us better assess the future development of a portfolio.

The amendment of Mexico’s Federal Labor Act (Ley Federal del Trabajo, LFT) in November 2012, had a clear impact on the average Motor Third Party Death indemnity in 2013.

Read this article by our Senior Casualty Underwriter for Latin America, Olivier Chariatte and learn why the changing legal and regulatory landscape for Motor Liability Bodily Injury insurance in Mexico and its implications for the insurance industry and its socio-economic environment, provide a good example of how defining new risk drivers will help us better understand the resulting development.

Risk Drivers in a Changing Regulatory Environment in Mexico.


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