Damage by Hurricane Otis in Acapulco, Mexico
Hurricane Otis severely damaged or destroyed many buildings and led to power and communication outages in the Mexican beachside city of Acapulco AFP

The aftermath of Hurricane Otis is quickly moving to result in one of the costliest natural catastrophes in Mexico's history, with losses of insured property reaching as much as $15 billion.

Swiss Re said Thursday that Otis "will likely become the costliest insured event in Mexico."

The reinsurance giant said in a report that while losses from the North Atlantic hurricane season remain below average in 2023, global insured losses from severe thunderstorms reached an all-time high of $60 billion so far in 2023.

Natural catastrophes, including earthquakes, wildfires, and thunderstorms will pass the $100 billion threshold for the fourth consecutive year, Swiss Re said.

According to CoreLogic, a risk analytics and modeling firm, the "insurable" losses from Otis in Acapulco could be as high as $15 billion.

These losses, CoreLogic explains, belong only to goods and properties with due insurance deeds, but do not include interruptions to business flow or costs associated with living expenses of the 900 thousand people affected by Otis.

In general economic terms, losses could add billions more as activities, such as tourism, retail sales, and industrial operations, are still being accounted for.

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