7.4 magnitude earthquake hits southern Mexico, tsunami threat follows

Buildings collapsed, residents were evacuated and tsunami waves of 2.3 feet crashed into Mexico’s southern coastline as a 7.4 magnitude earthquake hit the country on Tuesday.The earthquake occurred at 10:29 a.m. local time (11:29 a.m. ET), with an epicenter 6.8 miles southwest of Santa María Zapotitlán in Oaxaca state, near El Coyul.The earthquake could be felt as far as Guatemala, Honduras and El Salvador. In capital Mexico City, approximately 190 miles north of El Coyul, tremors were felt and sirens were heard wailing.A policeman stands in front of a partially collapsed building after an earthquake in Oaxaca, Mexico.Waves of 0.68 meters (2.2 ft) were observed in Acapulco and 0.71 meters (2.3 ft) in Salina Cruz.

The Pacific Tsunami Warning Center said that hazardous tsunami waves are possible within 1,000 kilometers (621 miles) of the epicenter, including along the coasts of Mexico, Honduras, Guatemala and El Salvador.The damage in Oaxaca state is considered light to moderate, according to the US Geological Survey (USGS) ShakeMap.Rubble from a building damaged by an earthquake in Oaxaca, Mexico, on Tuesday, June 23.Estimates modeled by the USGS suggest that localized casualties and damage are possible but there are likely to be fewer than 100 fatalities and less than $100 million in damage. However, the model only includes earthquake shaking, and not any impacts from potential tsunamis on the coastline.The USGS said that recent earthquakes in the area have caused secondary hazards such as tsunamis and landslides.The civil protection in Oaxaca has not yet reported any major damage.A policeman removes rubble from a building damaged by the earthquake in Oaxaca, Mexico.Earlier estimates put the magnitude of the earthquake at 7.7, but that has been revised down to 7.4 (and additional revisions are possible).Mexico is one of the world’s most seismically active regions and has a long history of devastating earthquakes. The country is located on top of three large tectonic plates and their movement causes regular quakes and occasional volcanic eruptions.In 2017, two powerful earthquakes hit the country in two weeks, toppling buildings, cracking highways and killing hundreds of people. One had a magnitude of 7.1 and the other a magnitude of 8.1.Evacuations in Mexico City after the earthquake shook the capital city.Mexico City is particularly vulnerable to earthquakes because its very soft and wet ground amplifies shaking and is prone to liquefaction, in which dirt transforms into a dense liquid when sufficiently churned.

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Crisis Management

California Wildfire Relief: A Collaborative Effort by Lawmakers and Insurance Leaders

California’s recent wildfires have highlighted the urgent need for action to address the growing insurance challenges in the state. With insured losses estimated at $30 billion, leaders are working tirelessly to provide relief and ensure resilience. Protecting Policyholders Amid Wildfire RisksCalifornia Insurance Commissioner Ricardo Lara has taken swift action, issuing a one-year moratorium on insurance companies canceling or non-renewing residential policies in wildfire-affected areas. Additionally, those who received non-renewal notices within 90 days before the fires are now protected.“If you’ve received a non-renewal notice between October 9 and January 7, your insurer should retain you as a valued policyholder,” Lara emphasized during a press briefing. Lara also proposed a future grant program to assist low-income homeowners in reducing wildfire risks by installing fire-resistant roofs and creating defensible spaces around their homes.“This initiative is crucial for protecting homes and building long-term resilience,” he noted. Legislative Action for Stability and Faster ClaimsCalifornia lawmakers introduced the FAIR Plan Stabilization Act, aiming to bolster the California FAIR Plan with catastrophe bonds to address potential liquidity shortfalls. Speaker of the Assembly Robert Rivas also announced plans to advance legislation that would streamline insurance claims for homeowners affected by the wildfires. The Financial Toll and Industry ResponseAccording to Wells Fargo Securities, insured losses from the wildfires are projected at $30 billion, with homeowners’ insurance accounting for 85% of those losses. High-value properties and extensive damage underscore the financial strain, as the Palisades Fire alone has burned over 23,000 acres and destroyed 4,500 buildings. Despite the magnitude of the disaster, industry leaders assure Californians that the insurance sector is equipped to handle the recovery. Sean Kevelighan, CEO of the Insurance Information Institute (Triple-I), affirmed that “all claims will be covered, whether through private insurers or the California FAIR Plan.” A Call for Resilience and ReformThe devastating wildfires serve as a wake-up call for California to rethink its preparedness and insurance strategies.“This catastrophic event underscores the need for greater resilience,” Kevelighan said. “It’s time to reevaluate how we manage risks and sustain a functional insurance market in this state.” At Skyscraper Insurance, we are committed to supporting our clients in navigating these challenges, ensuring access to reliable coverage, and fostering resilience for the future. Together, we can weather any storm. #WeShareYourVisionForABetterTomorrow

Workers' Comp

2025 Workers’ Compensation Trends: What to Expect

As the workforce continues to evolve, workers’ compensation is at the forefront of addressing new challenges and opportunities. By 2033, nearly one in four U.S. workers will be 55 or older, as reported by the Bureau of Labor Statistics (BLS). This marks a significant increase from just over 15% in 2003. The aging workforce brings new complexities, including a rise in chronic health conditions, comorbidities, and longer recovery times following workplace injuries. At Skyscraper Insurance, we understand that these trends require adaptive strategies. Tailored safety programs, ergonomic solutions, and a focus on preventive care and health maintenance are vital to ensuring the health, productivity, and safety of older employees. These measures don’t just mitigate risks—they also create a supportive and efficient workplace environment. In parallel, advancements in technology are revolutionizing the workers’ compensation landscape. Innovations like artificial intelligence and telemedicine are enhancing the customer experience, from streamlining underwriting and claims processes to providing injured workers with immediate access to medical professionals. The rise of the gig economy further underscores the need for dynamic, tech-driven solutions to keep pace with an ever-changing workforce. The importance of risk management is also reflected in recent executive surveys. In 2024, 23% of global executives identified employee risk as their top concern, surpassing all other business risks. Additionally, 42% believed they were operating in a high-risk environment, a notable increase from 31% in 2023. This sentiment highlights the growing recognition of the need for proactive and comprehensive workers’ compensation solutions. Looking ahead to 2025, businesses should prepare for potential shifts in workers’ compensation costs. Factors such as wage inflation, increased claim sizes, and market dynamics may lead to rising premiums despite a softer market. At Skyscraper Insurance, we are dedicated to helping businesses navigate these changes effectively. By staying ahead of industry trends and leveraging cutting-edge solutions, we empower our clients to maintain robust, compliant, and forward-thinking workers’ compensation programs. Together, we share your vision for a safer and more prosperous tomorrow.

7.4 magnitude earthquake hits southern Mexico, tsunami threat follows