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2025 risk management strategies for multinationals in the US and Mexico

Multinational organizations in the US and Mexico face a dynamic environment marked by changing geopolitical and regulatory conditions. Risk leaders should consider the strategies to adapt to current complexities and build organizational resilience as they prioritize future growth.

03/21/2025 · 4 minute read

Multinational organizations in the US and Mexico face a dynamic environment marked by changing geopolitical and regulatory conditions. Risk leaders should consider the following strategies to adapt to current complexities and build organizational resilience as they prioritize future growth.

For multinationals based in the US or Mexico with operations in their neighboring country, 2025 is expected to bring new challenges and opportunities related to business expansion, trade, and risk management. Tariffs and other trade-restricting measures could have significant economic consequences globally, with implications for multinationals’ supply chains, sourcing abilities, and beyond.

Meanwhile, multinationals should continue prioritizing compliance with local tax requirements and regulations under their global insurance programs. The following guidance can help multinationals in both the US and Mexico remain informed, compliant, and well positioned to grow with confidence.

1. Identify or revisit key distinctions between legal and regulatory environments

Multinationals already face a complex web of legal, regulatory, and tax implications that vary significantly across the regions in which they operate. This complexity is only heightened by geopolitical uncertainties. These organizations must remain vigilant and informed about evolving legislation that could impact their global insurance strategies.

Consider a multinational headquartered in Mexico City but primarily operating in the US, with its risk manager based in New York City. In the US, where the legal environment is marked by a more litigious culture, businesses may be exposed to increased liability risks. This propensity for litigation not only raises the stakes for potential legal disputes but could also lead to higher costs associated with legal defense, settlements, and insurance premiums. The risk manager in New York must be acutely aware of these factors, ensuring that the organization’s insurance coverage adequately addresses the heightened risks of operating in such a litigious environment.

Conversely, the risk landscape in Mexico presents its own set of challenges. Criminality, including violence and drug trafficking, remains a significant concern for multinationals looking to expand their operations in the region, also impacting shipments into the US. Risk leaders must consider how these unique exposures could affect their organization’s operations and insurance needs, particularly in terms of property protection, employee safety, and potential business interruptions.

2. Pinpoint admitted insurance needs

In the same vein, multinational organizations need to consider the critical distinctions between admitted and non-admitted policies for shipments moving between the US and Mexico.

International marine cargo coverage is generally available and permitted on a global and non-admitted basis, based on the insurance interest of the owner of the goods, including the cross-border segment of inland transit between Mexico and the US.

However, inland shipments within Mexico require coverage on an admitted basis, meaning if the goods are only transiting within Mexico, they must obtain local coverage. Companies shipping between Mexico and the US should assess point-to-point shipments within Mexico to determine if a local admitted policy from a licensed insurer is necessary.

Another example of coverage nuance between the US and Mexico can be found with workers’ compensation. In the US, workers' compensation is mandated in all states, barring Texas, but managed or regulated differently on a state-by-state basis.

While Mexico also mandates workers' compensation, all employers must contribute to the Mexican Institute of Social Security (IMSS), which provides coverage for work-related injuries and illnesses as well as other social security benefits such as healthcare, maternity leave, and retirement pensions. This fundamental difference necessitates that multinational organizations carefully navigate the regulatory landscape in each country to help maintain compliance and adequate protection for their employees.

3. Engage a third-party regulatory and tax consultant

Against this risk backdrop, multinational organizations may benefit from engaging a third-party regulatory and tax consultant to better manage compliance and risk across jurisdictions and refocus their attention on other core business objectives. This collaboration can offer a streamlined and comprehensive understanding of risk, helping organizations save time and resources on compliance matters.

A consultant can assist in identifying and interpreting specific legal requirements, allowing businesses to adjust their strategies in response to evolving regulatory and geopolitical conditions. Key areas of support from a third-party consultant include regulatory and tax reviews, pre-renewal assessments, placement strategies, premium allocation methodologies, and the design of risk financing structures.

Expanding with confidence

While multinationals cannot control external factors, they can be proactive about protecting their people and businesses on international insurance and risk issues. Marsh’s multinational teams are uniquely positioned to help organizations maintain compliance and transparency, simplify global insurance processes, and develop more comprehensive insurance programs.

Marsh distinguishes itself by having a dedicated team of insurance regulatory and tax advisors who can advise customers on the complexity of the global market. Our global specialists provide a coordinated, global view on risk and enhanced program management, to help structure your insurance program more efficiently and reduce coverage gaps. Working with one single broker across your accounts, the process is streamlined and tailored to the unique needs of your business, whether that’s in the US, Mexico, or beyond.

To learn more about mitigating multinational exposures and building more robust global insurance programs, speak with a Marsh representative.

Meet the authors

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Annette Robles

Risk Management Lead

  • Mexico

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Michael Rodgers

Marsh Multinational West Zone Leader

  • United States

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