Happy Friday! Today, how the Rio Grande do Sul floods are affecting the insurance industry. Meta under fire. And the impacts of the recent rout of the Brazilian real.
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Climate change hits Brazil’s insurance industry
Beyond the human toll, the recent floods in Rio Grande do Sul are expected to affect inflation. Brazil’s southernmost state is home to the country’s fourth-largest economy, and is the country’s main rice producer and a key manufacturing hub. But the floods are also affecting car insurance premiums across the country.
By the numbers. According to CNSeg, an organization representing insurers, over 48,000 claims for compensation were registered between April 28 and June 18 due to damages caused by the floods. They reach almost BRL 3.9 billion (USD 715 million). Companies expect even more claims, as the state continues to be on alert for further floods.
- Car insurance claims alone account for BRL 1.27 billion in compensation.
Impact. A survey by the news website Uol shows that contract renewals can be up to 15 percent...