Mexico’s risk transfer strategy: public sector insurance programmes

In this joint lecture with the IIL’s London Market Committee, the Mexican Chamber of Commerce in Great Britain, Lloyd’s and the Insurance Development Forum, Carlos Noriega talked about Mexico’s public sector risk management strategy and framework, focusing on risk transfer mechanisms including the use of financial instruments such as CAT Bonds and more specifically insurance programmes.

The Mexican government has a risk transfer strategy, which includes the purchase of insurance for key federal entities – education, health, social housing, transport infrastructure – as well as its natural catastrophe Fund (FONDEN).

Most of these programmes are insured with local insurance companies, following a public tender process, which then in turn require facultative reinsurance from international markets including Lloyd’s.

Mexico’s Ministry of Finance plays a key role by a) approving budgets for insurance premium; b) directly managing the risk transfer for some key programmes (FONDEN in particular), c) working with state agencies, academia and cat modellers to produce risk information ; d) advising other government entities on best practice.

By the end of this event members would have gained insight into:

• Mexico's public sector strategy and processes for purchasing insurance
• How facultative reinsurance then flows to the international markets, including Lloyd's
• High level details of some of the main insurance programmes that typically come to London as FAC RI, and the public tender process for these
• Details of how the FONDEN purchases insurance, the risk information made available by the Mexican Government, the operating rules of the FONDEN, and the link/difference between the FONDEN (federal) and the parallel insurance purchases at state level (the so called 'state' FONDENS)

Chair:
Brendan Plessis, Head of Strategic Business Development for Reinsurance, AXA XL and Co-Chair of the Centre for Disaster Protection’s Expert Advisory Group.

CPD events are open to CII and PFS members
Registration closes at 12pm two working days before the event date
For events held in The Old Library, Lloyd's pass holders may also attend and do not need to register
Original Photo ID (Driving Licence, Passport, Work ID with company logo and full name) is required to gain entry to all venues

Conditions:

• Email confirmations and original photo ID must be produced to security staff at the lecture venue
• Attendance confirmations are non-transferable to any other person or lecture
• All venues have limited capacity and registration and/or a Lloyd's pass does not guarantee admission

Please let us know what we can do to make our events fully accessible to you.

Contact:
Please contact Patricia Pedraza (07463 028327) with any queries regarding the CPD events programme.

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