Insurance coverage for Mexican coastal hotels declining due to hurricanes

Insurance companies are reducing coverage for beach destinations due to the increasing frequency and intensity of hurricanes, according to Bernardo de la Vega, a leader at EY. During the Green Economy and Sustainable Development forum in Quintana Roo, de la Vega warned that insurers have already halved the supply of policies in locations such as Acapulco, where securing beachfront property insurance has become extremely difficult.

As climate change drives more Category 5 hurricanes, losses have surged, making it increasingly unprofitable for insurers to cover certain coastal hotels. This trend includes rising premiums, limited coverage, and some companies exiting specific markets entirely to improve returns. Globally, reinsurers have reduced capacity for high-risk coastal areas, with premiums increasing by 30 to 60 percent.

De la Vega noted that this lack of insurance poses a significant threat to coastal tourism, as insurance is often a prerequisite for accessing credit. Without financing, reconstruction after a disaster becomes impossible, threatening the continuity of these businesses.