Editorial - MacAfee and Edwards

E-Mex News 2013. Issue #3
Inside this issue:
Editorial
1
EDITORIAL
2
Transpacific Agreement Partnership
First annual report of President
México’s Insurance Industry update
3
Insurance News
Homeowners, Medical Expenses and Auto Liability.
Industry News
Tourism
Insurance obligatory in Highways
4
The MacAfee & Edwards factor
Meet our people
Something to laugh about
E
very September 1st, the federal government has to
face the nation and report about the government activities during the year. His report, a 820 page book
has 5 five subjects:
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Internal Peace and Security issues.
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Education.
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Prosperity
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Transparency and Accounts Rendition.
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Social Responsibility.
No President in the past has been able to get the consensus of the two opposite parties PAN and PRD to
reach the Education, Energetic and Fiscal Reform, so
desired by the last two presidencies; However, his
management so far, has lacked to execute such decisions, as he is more concerned on political issues
rather than benefiting the Democracy, he has as a
flagship. Example: in the Education Reform, the key
issue is that teachers should be evaluated and if they
fail to pass these exams -up to three chances- they
will lose the license to teach. Well, this so simple
important measure has taken thousands of them to
the streets, to protest and to provoke chaos in the
streets, blocking highways, impeding people to reach
the airport, taking over the Congress, the Senate and
the government, through public force, will do nothing; Why? Because, he is afraid that all bridges built
within this consensus will fall down if he loses the
back of Teachers Union Association, by deliberately,
doing nothing in favor of a 98% of the population
who wishes not only Education of Quality but also,
deserve not to be bothered by these demonstrations
that create a chaos in the streets of Mexico City.
This 820 page report cites, the action has taken in all
subjects, but leaves forgotten, the lack of quality authority decisions, he is starting to show. Times will
tell; hope he gets those guts back.
USA OFFICE
700 S. Flower Street, Suite 1216. Los Angeles, CA. 90017.
Tel. (213) 629-9777 Fax. (213) 629-9779, [email protected]
www.macafeeandedwards.com
Mexico ‘s insurance
Industry update
Transpacific Agreement
Partnership
In October of 2012
Mexico
was invited to participate in
this so called: Second Generation free trade agreement to join Australia,
Brunei,
Chile,
United
States, Malaysia, New Zealand, Peru, Singapore, Vietnam and Canada who
joined at the same time as Mexico. This new free trade agreement which was originally
founded by Chile, New Zealand
and Singapore in what used to be
the Pacific Three Close Partnership
going back to 2006, crystallized an
old dream to unite as partners
countries at all sides of the Pacific
Ocean, something that was first
discussed in 1994.
If we consider that there are in
this eleven country group a 30%
share of the Net national product
of the world, 19% and 22% of the
exports and imports worldwide as
well as 10% of the population of
the planet, this is a major alliance.
Mexico is estimating that if all
comes thru, as this is not
operating yet, Mexico will be
benefited with 150 billion dollars
in exports in as many as 180
different articles, lead by, auto
exports -Mexico made 2.8 million
vehicles in 2012- Aerospace
generated 5.4 billion dollars and
occupies 13k workers and who is
also very competitive in home
electronics, and there are 60,000
Mexican Companies participating
in the world exports. Besides
free trade as such, this treaty is a
new generation because there
are complex subjects involved
such as intelectual property, agriculture,
origin
regulations,
customs procedures, sanitary
measures, environmental issues,
competition policies, etc…
SOURCE: CONEXION. ITAM Magazine.
MEXICO OFFICE
Av. Las Palmas, Fraccionamiento Las Palmas 4912, Tijuana, B.C. México
Tel. 01152 (664) 134-6520 Fax. 01152 (664) 621-1819, [email protected]
www.protecint.com
Mexico in the numbers:
As of the closing of the 2nd quarter
2013, we can see a premium
increase of 16% over last year.
This growth is mostly in P&C business 22.3% even though economic
indicators have shown a slow
down of the Economy. The reason? More insurance culture and
more awareness of asset protection.
Still our market is pretty
virgin, but there are areas of opportunity. These figures for 2q13
reflect a reduction in CAT perils
premium of 5.6% and cargo insurance by 7%. While in contrast, GL
is also up by 25%, again risk
awareness. Bank Insurance comprehends 36% of total premium
down 1 point from 2012 (good
news for us local brokers) Losses
are up 12.6% but in P&C are down
19.7%. Here, the story is that
there has not been any major cat
loss this year yet
-knocking on
wood-. As to how premiums are
invested in the financial markets,
please note that fixed rent, mostly
government paper, accounts for
73% since they guarantee a high
return, while the Mexican Stock
Exchange accounts for only 15%.
As to the technical reserves, they
are also up this year by 6.6% to a
record high 54 billion US Dollars.
The solvency margin, while awaiting Solvency II due in april of 2014,
has an 18% above regulations.
Great numbers for a slow
economy, we have to say.
SOURCE: EL ASEGURADOR
Insurance obligatory
in
Highways
Insurance News
Homeowners and Real Estate
There are 30 million building structures in Mexico
and only 5% have insurance. Most of this 5% are
partly insured because these are properties that
have a loan , so the Bank only covers the amount of
the loan but not the equity nor the increase in values estimated at
10% for the past two years has rebound in general. This tells you of
the great potential there is for Insurers, Agents/Brokers, looking for
market niches.
For Major Medical Expenses
Only 8 million part of 112 million people have private
insurance for accidents and sickness. Most of
Mexicans who are employees have their public
health insurance with ISSSTE if they work for the
government and IMSS if they work for private institutions, still you
can see a huge potential for insurance.
For Auto Liability
Due to the change in the federal labor law, if we kill
someone in an accident, we might be liable to pay
up to the equivalent of US dollars $ 300,000 per
person while in the past the limit was nearly 50,000,
so we are recommending all our clients to push the limits up, which
is another area of opportunity. We in our office worked out a
specific excess of loss pushing limits above the one million dollar
mark, and we are offering this product to all our clients.
SOURCE: MILENIO DIARIO
Industry News
New insurance obligatory law: after
years of uncertainty where some
states approved, others did not, some
others said yes, then backed
off, finally a brand new federal law
obliges all drivers in federal and interstate highways, a third party liability
policy,
effective
October
1 st .
Although, the policy limits are still to
be incorporated in the law and implemented, there is as background the
change in the Federal Labor law occurred December 1st, which changed
significantly, all death indemnities.
From 730 days of minimum wage to
5000 days plus the interconnection
with state and federal laws, which can
multiply the indemnity limit up to
nearly $250,000 dollars per person.
According to the study which triggered
this new law, three out of 100 deaths
are in highway accidents, 7 out of 10
autos are still uninsured and physical
damages per year total about 9 billion
dollars.
SOURCE: EL ASEGURADOR.
Insurance magazine
Tourism Outlook
As announced by president Peña Nieto in the next two years, the
private sector will invest 8.6 billion dollars in 27 different destinations of the country as a result of nearly 100
entities and investment groups that will build time share hotels, airport infrastructure, restaurants, golf clubs,
marinas, hospitals and retirement communities among others and this will translate in approximately 106
thousand direct jobs.
SOURCE : REFORMA NEWSPAPER.
USA OFFICE
700 S. Flower Street, Suite 1216. Los Angeles, CA. 90017.
Tel. (213) 629-9777 Fax. (213) 629-9779, [email protected]
www.macafeeandedwards.com
The MacAfee & Edwards factor
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Born in 1956.
We were the first company to approach US contacts to insure in Mexico.
Pioneers in Tourist Aircraft insurance.
Only broker who has licenses to operate from the
USA -surplus lines broker- and from Mexico full brokerage house as Proteccion Tecnica Internacional.
Fully bilingual and bicultural.
All partners with US insurance education besides
our degrees in Mexican Universities.
Noted for being innovative and with great knowledge of the maquiladora industry, where we have
contributed with implementing specialized
coverages.
Without being “an Alpha House” the only broker in
Mexico with presence in most key cities of our
country, for local service.
Have appointments with all major carriers for insurance and bonds.
Our own personal lines programs on line, for US
Agents/Brokers to use, second to none.
Our commission sharing with the US broker, from
the ground up, showing more appreciation for the
US producer.
Meet our eople
p
Lupita Alba was born in
Los Angeles, CA., and has
been part of the
MacAfee & Edwards, Inc.
team for 7 years. Her underwriting career began
back in 1995 as part of
one
of
Mexico’s
prestigious Insurance Company: Seguros
Comercial America (now known as AXA Seguros,
SA de CV). Since then, Lupita’s experience in
the Mexico insurance industry has ranged from
auto, homeowner’s, cargo to commercial P&C
coverage.
When Lupita is not busy crunching numbers a/o
seeking competitive proposals, she enjoys listening to a variety of music as well as enjoying
reading a great novel!
Lupita’s work ethic is :
“Success is the result of perfection, hard word,
learning from failure, loyalty and persistence”
Something to laugh about...
\
Little Johnny is always being teased by his friends for being stupid. Their favorite
joke is to offer Johnny his choice between a nickel and a dime—Little Johnny
always prefers the nickel- One day after Johnny has taken a nickel, a neighbor
man, takes him aside and says : “ Johnny, those boys are making fun of you. Don’t
you know a dime is worth more than a nickel, even though nickel is bigger? ”
Johnny grins and says, well, if I took the dime, they’d stop doing it, and so far
I’ve made twenty bucks…
MEXICO OFFICE
Av. Las Palmas, Fraccionamiento Las Palmas 4912, Tijuana, B.C. México
Tel. 01152 (664) 134-6520 Fax. 01152 (664) 621-1819, [email protected]
www.protecint.com