Summer is quickly approaching, and Mexico is one of the most popular getaway destinations for U.S. citizens. Millions of U.S. residents travel to Mexico every year for tourism, study and business, and according to the U.S. state department, more than 150,000 cross the border every day, and the U.S. Embassy in Mexico estimates that the number of American citizens currently living in Mexico is in excess of one million, and growing. The trend means that the demand for insurance is growing as well.
With the tourism in Mexico on the rise, a recent report from the U.S. Department of State claims that the Mexican government is committed to improving security conditions in most of the country, in order to create a climate that encourages the U.S. population to regain their confidence towards travel and investment activities in Mexico, despite recent histories of crime and drug-related violence. The report also observed that "The Mexican government dedicates substantial resources to protect visitors to major tourist destinations, and there is no evidence that criminal organizations have targeted U.S. visitors or residents based on their nationality."
Resort towns and tourist destinations in the country generally do not see the levels of drug violence and crime reported in the border region or along major trafficking routes.
Improved conditions in the country are reflected in the results of Mexico insurance purchased by Americans, according to MexiPass, a managing general agent and underwriting manager that has monitored risk exposures of American interests in Mexico for the past 25 years.
"The demand for insurance products for Mexico, such as tourist and resident auto policies, homeowner's insurance, boat insurance, and commercial policies is very active, and the frequency and severity of losses to American policyholders in Mexico has been decreasing steadily over the past 12 months" said Jose A. Cacho-Sousa Jr., MexiPass product manager.
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