Nearshoring could create more than 1.2 million Jobs in Mexico.
Nearshoring has transformed the business and economic landscape in Mexico, particularly in sectors such as logistics and manufacturing, thanks to the establishment of new factories and industrial spaces, which have driven job creation in the country.
Despite the advantages that nearshoring offers to the Mexican economy, it is impossible not to consider the challenges it presents for businesses, especially concerning technology adoption, cybersecurity, and supply chain monitoring. These areas require protection, and one way to safeguard them is through corporate insurance.
According to the corporate services firm “Grupo Interesse”, corporate insurance "has become essential for risk management, providing coverage for physical assets and employee well-being." In 2023 alone, the insurance sector grew by 12% compared to the previous year.
This can be explained by the fact that foreign direct investment (FDI) in Mexico related to nearshoring grew by 47% in the first 9 months of 2023, according to data from the Mexican Institute for Competitiveness (IMCO).
Nearshoring Drives Demand for Corporate Insurance
Nearshoring could generate more than 1.2 million jobs in Mexico, according to data from consulting firm McKinsey, as reported by Grupo Interesse in a statement dated July 29, 2024. The statement highlighted that this increase in job opportunities will also drive demand for health and life insurance.
Information from the International Finance Corporation (IFC) revealed that over 200 companies from Asia, the United States, and Eastern Europe plan to establish operations in Mexico over the next three years. However, this requires "protecting their operations, assets, and employees," noted Joaquín Barreiro, Managing Partner and CCO of Grupo Interesse.
What type of protection is required?
Considering the corporate insurance types most requested in the past year, the following are recommended:
- Property Insurance: To protect facilities, machinery, and assets against physical damage
- Liability Insurance: Essential coverage to protect against third-party claims
- Transportation and Logistics Insurance: Crucial for securing goods during transit
- Health and Life Insurance for Employees
Given this, Grupo Interesse recommended that to support nearshoring, customized coverage and insurance solutions should be offered to effectively assess and mitigate risks. This approach would benefit not only the investing companies but also Mexico.
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