Losses from the Mexico riots could hit $200mn

The January riots in Mexico over the price of petrol could cost the global insurance market as much as $200mn. The protests were caused when it was announced there would be a 20% rise in the cost of petrol. Walmart alone is asking its political risk teams for a payment of between $60mn and $70mn. The cover was put together by BP Global and includes political violence protection against strikes, riots and civil commotion. The policy is led by QBE, which has a $15mn line on the $7mn primary layer. Other carriers affected are Pembroke, Talbot, Sompo Canopius and Lancashire. A source from Lloyds said that some wrote the excess but not the primary so there are a few who are waiting to see if they are liable for any payments.