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Payouts limited after huge Mexico quake

Insured losses from the 8.1-magnitude earthquake that shook Mexico’s southern coast last Thursday are likely to be limited, according to ratings agency AM Best.

The quake struck Chiapas and Oaxaca, states with high poverty levels, which means insurance coverage is likely to be low.

The Mexican Government has a catastrophe bond for up to $US360 million ($447 million) against natural disaster losses, which could be used to mitigate the quake’s impact on infrastructure.

At least 90 people are confirmed dead and more than 2 million were affected by the quake, the most powerful to hit the country in a century.

“We’re talking about more than 800,000 people who potentially lost everything, and some of their loved ones,” Oaxaca Governor Alejandro Murat told Mexican television.

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