As Hurricane Erick approaches Mexico’s southern coast, the insurance industry is on high alert. This storm is rapidly gaining strength and is expected to make landfall on Thursday morning. With evacuation orders in place and government warnings issued, many residents are preparing for the worst.
President Claudia Sheinbaum of Mexico is urging people in vulnerable areas, particularly in Oaxaca and Guerrero, to take the situation seriously. She emphasized that those in low-lying communities should evacuate to shelters. "Don’t go out, stay home, and stay alert," she advised.
Hurricane Erick is not just notable for its strength, currently a Category 1 with winds reaching 85 mph, but also for its timing. It’s unusually early for a storm of this intensity to hit Mexico’s Pacific coast, often spared from such events before July. Researchers have noted that this storm is arriving over a month ahead of the average for the Eastern Pacific.
If Erick strengthens to a Category 3 hurricane, it will set a record as the earliest major hurricane to make landfall on the Pacific side of Mexico. The last significant early-season storm, Hurricane Agatha in 2022, caused extensive flooding and damage just 20 miles from Erick’s predicted path.
The insurance sector is particularly concerned about the potential impact of this storm. The Oaxaca and Guerrero regions, known for their towns and tourist spots, are at high risk. Forecasts predict these areas could receive between 8 to 20 inches of rain, with some locations expecting even more. The primary threats include mudslides and flash flooding, which could severely damage infrastructure and coastal properties.
As the storm approaches, the Mexican government has activated emergency response protocols, preparing relief equipment and coordinating with civil protection services. However, insurers are worried about the stress on business continuity plans and claims management resources, especially after last year’s record storm season.
Currently, a tropical storm warning is in effect west of Acapulco, and a hurricane watch near Puerto Ángel has been adjusted as the storm’s path shifts slightly eastward. While the exact impact zone remains uncertain, the insurance sector is bracing for what could be another challenging situation.
As Hurricane Erick nears landfall, loss adjusters and catastrophe response teams will closely monitor wind speeds and rainfall. They are also considering how this early-season hurricane could change the way coastal risks are assessed in Mexico moving forward.