Historically, the Cocos plate boundary produced the 1985 Michoacan earthquake of magnitude Mw Richter scale. It destroyed hundreds of buildings and caused thousand of deaths in Mexico City and other parts of the country. It is considered the most damaging earthquake in the history of Mexico City. The Mexican insurance industry officials estimated payouts of four billion dollars. In the last decades, other earthquakes have reached the magnitude Mw Richter scale. For earthquakes, the Mexican insurance market has traditionally been highly regulated, with limited protection provided to homeowners and reinsurance by the government. Today, after the occurrence of an earthquake, the reconstruction can be financed by transferring the.
