Insurance firms will have to pay out 16.6bn pesos (US$1.1bn) to policyholders who made claims following Hurricane Odile which struck Mexico this year.
And losses could increase, El Economista reported, citing local insurance association Amis head Mario Vela. Insurers have paid out 3bn pesos to date.
The cost to the insurance industry of Odile – which hit Baja California state – is already higher than that of 2013 storms Manuel and Ingrid.
Odile made landfall on September 14, dumping an estimated six months' worth of rain within one hour.
Vela said that insurance penetration in Baja California – home to resort town Cabo San Lucas, where some 90% of hotels are insured – is among the highest in Mexico.
Amis general director Recaredo Arias added that losses may increase as various consequential estimates are still pending.
The airport serving Cabo is now operating normally after having sustained damage.
Insurance Industry Takes US$1bn Hurricane Odile Hit
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