Insurance as an indirect regulatory mechanism: its role as a gatekeeper in the new Mexican gas transportation regulations

On September 10, 2025, a truck transporting liquefied petroleum gas (“LP gas”) overturned and exploded beneath the La Concordia bridge, located in Iztapalapa, Mexico City. The incident resulted in injuries to dozens of individuals and led to the death of at least twenty-nine people.

The explosion not only exposed deficiencies in the operation and oversight of vehicles transporting dangerous substances but also prompted the issuance of a series of measures by federal and local authorities in Mexico. Among others, a set of mandatory regulatory provisions governing the transportation of LP Gas was announced, to be issued in coordination by the Mexican Ministry of Energy (Secretaría de Energía), the Mexican Ministry of Infrastructure, Communications and Transportation (“SICT”), and the Safety, Energy and Environment Agency (“ASEA”).

Considering the adoption of these new mechanisms, it is pertinent to undertake a legal analysis of the role that Mexican entities, such as insurance companies, may play in enforcing minimum technical standards for risk prevention. This is particularly relevant in a context where maintaining insurance coverage constitutes a legal requirement to operate.

New regulations

As a consequence of the incident, on October 03, 2025, the Emergency Mexican Official Standards NOM-EM-006-ASEA-2025 (related to the LP gas transportation) and NOM-EM-007-ASEA-2025 (related to the LP gas distribution) were published in the Mexican Official Gazette. Specifically, NOM-EM-006-ASEA-2025 sets forth the technical specifications and safety requirements applicable to individuals and entities engaged in the transportation of LP gas.

The most relevant requirements include the implementation of a speed governor limiting trucks to a maximum speed of 80 km/h, as well as the mandatory adoption of annual training programs for vehicle operators, which must be certified by the SICT and the ASEA. In addition, transport operators are required to implement a predictive and preventive maintenance plan, including details on the type of maintenance performed, the inspections carried out, the dated thereof, the results obtained, the actions required, and the personnel responsible to execute such measures.

In order to evidence compliance with these requirements, transport operators must obtain an annual operation and maintenance report to be issued by an ASEA inspection unit.

Mandatory insurance in Mexico

In Mexico, some States such as Queretaro, Estado de Mexico, and Morelos, require that all motor vehicles maintain valid civil liability insurance to circulate, which must, at a minimum, cover damages caused to third parties in their person or property. In Mexico City, this obligation is set forth in Article 46 of the Traffic Regulations (Reglamento de Tránsito).

With respect to LP gas transportation, Article 23 of the ASEA’s General Administrative Provisions, published in the Mexican Official Gazette on July 23, 2018, provides that transport operators must maintain civil liability insurance with a liability limit of at least USD $75,000.00 per transport unit, in addition to excess coverage with a single combined limit for civil liability and environmental liability of USD $750,000.00 per operator.

From the foregoing, it is understood that insurance is not optional, but rather a legal obligation imposed on transport operators. It should be noted that, pursuant to Article 150 Bis of the Insurance Contract Act (Ley sobre el Contrato de Seguro), liability insurance policies deemed mandatory by law cannot be suspended, rescinded, or terminated prior to their expiration period.

This mandatory nature may position insurers as strategic actors within the regulatory ecosystem, as the ability afforded by law to agree upon specific obligations binding on insured parties may directly influence the operational practices of transport operators. This, in turn, heightens the relevance of the new regulatory framework in the assessment of the risks to be underwritten.

In the United States, for example, insurers become strategic actors when they condition the issuance or renewal of insurance policies upon the insured’s compliance with applicable legal requirements. Within the U.S. legal system, this concept is referred to as the gatekeeper role, describing entities that, without being public authorities, enhance legal compliance by acting as filters through which access to certain services is mediated.

Although the Mexican law does not formally recognize the gatekeeper concept, insurance companies could, in this context, assume such a role by incorporating, prior to policy issuance, specific obligations binding upon gas transport operators, as insured parties.

The inclusion of such obligations would serve a dual purpose: on the one hand, to reinforce and promote compliance with the applicable regulatory framework governing gas companies; and, on the other, to reduce the occurrence of losses by ensuring adherence to safety measures by gas companies.

Insurers as indirect regulatory agents

Although insurance companies in Mexico lack the authority to compel their insureds to comply with the law through coercive means, Article 54 of the Insurance Contract Act does permit the parties (insurer and insured) to expressly stipulate specific obligations incumbent upon the insured for the purpose of mitigating risk.

As noted above, the operation of LP gas trucks in Mexico is subject to the procurement of civil liability insurance. Accordingly, compliance with the new Mexican Official Standards may be explicitly incorporated into the insurance policy as obligations binding upon LP gas transport operators in their capacity as insureds.

From this perspective, insurers in Mexico may assume a gatekeeper role whereby, without acting as public authorities, they contribute to regulatory reinforcement and promote compliance with safety standards through the contractual imposition of obligations within the insurance policy. In this sense, insurance operates not merely as a legal requirement, but also as an incentive mechanism for prospective insureds to comply with their regulatory obligations.

While it is the State that enacts the applicable legal provisions, it is institutions such as insurance companies that indirectly enhance the effectiveness of said rules.

Nonetheless, it must be borne in mind that, unlike public authorities, insurance companies do not possess inspection powers or sanctioning authority. Consequently, their role is limited to contractually agreeing with the insured upon certain obligations aimed at reducing the likelihood of the insured risk materializing.

Reflections

The incident at the La Concordia bridge exposed structural deficiencies in the transportation of dangerous substances and highlighted the opportunity to strengthen cooperative mechanisms between the Mexican government and service providers.

Although the gatekeeper concept is not formally recognized under Mexican law, its underlying rationale provides a useful lens through which to examine the role of the insurance sector as a guardian, through the contractual incorporation of technical obligations imposed upon the insured with a view to mitigating risk.

If properly implemented, this approach could be extended to other industries in which insurance coverage is mandatory, thereby positioning insurance companies as key allies in the management of public risks.

Bibliography

1. Secretaría de Medio Ambiente y Recursos Naturales (ASEA). (2025, 03 de octubre). Norma Oficial Mexicana de Emergencia NOM-EM-006-ASEA-2025, Transporte de Gas Licuado de Petróleo. Diario Oficial de la Federación.

2. Secretaría de Medio Ambiente y Recursos Naturales (ASEA). (2025, 03 de octubre). Norma Oficial Mexicana de Emergencia NOM-EM-007-ASEA-2025, Distribución de Gas Licuado de Petróleo (cancela a la NOM-007-SESH-2010 Vehículos para el transporte y distribución de Gas L.P.-Condiciones de seguridad, operación y mantenimiento). Diario Oficial de la Federación.

3. Agencia de Seguridad, Energía y Ambiente. (2018, 23 de julio). Disposiciones administrativas de carácter general que establecen los Lineamientos para el requerimiento mínimo de los seguros que deberán contratar los regulados que realicen las actividades de transporte, almacenamiento, distribución, compresión, descompresión, licuefacción, regasificación o expendio al público de hidrocarburos o petrolíferos. Diario Oficial de la Federación.

4. Gobierno de la Ciudad de México. (s.f.). Reglamento de Tránsito de la Ciudad de México. Gaceta Parlamentaria de la Ciudad de México.

5. El Financiero. (2025, 03 de octubre). México publica nuevas normas para transporte de gas LP en el DOF. 

6. Steinberg, Marc I. & Ames, James. (2017). The Weakened Gatekeeping Incentives Under the Uniform Securities Act. Yale Law & Policy Review. 

7. Hamdani, Assaf. (2004). Gatekeeper Liability. Southern California Law Review.