Insurance
Home›Insurance›Property Insurance›Hurricane Simon strengthens, reviving focus on Mexico…
Hurricane Simon strengthens, reviving focus on Mexico catastrophe bond
The $175 million IBRD CAR Mexico 2024 (Pacific) parametric bond is tied to hurricane-strength conditions, including a central pressure of about 932 mb or lower for a payout trigger.
Hurricane Simon in the Pacific has rapidly intensified and is expected to make landfall on Mexico’s coastline on Sunday, bringing a $175 million IBRD CAR Mexico 2024 (Pacific) parametric catastrophe bond back into focus, according to Artemis.
Artemis reports that updates from the U.S. National Hurricane Center put Simon at Category 4 strength, with sustained winds of 150 mph and a minimum central pressure of 938 mb, with additional strengthening still possible.
The outlet said further data could come after an Air Force Reconnaissance aircraft is scheduled to investigate the storm later on Oct. 10, which could improve pressure readings used in forecasts.
Artemis added that the parametric box linked to the bond is associated with a central pressure of 932 mb or lower when Simon crosses, which is the level cited as needed for any payout to come due.