The CNseg (National Confederation of Insurers) says that the claims already triggered in Rio Grande do Sul due to the floods in May total an estimated impact of R$ 1.673 billion.
The final amount, however, is still uncertain, as only a small number of clients have activated their insurance companies, which in turn have not been able to adequately assess the real cost of these events. There were 23,441 claims reported as of this Thursday (23).
“Surely, the final amount will be much higher. Undoubtedly, this is the largest indemnity from a single event that the sector has ever faced in the country,” said Dyogo Oliveira, president of CNseg, in an interview with journalists this Friday (24).
Damage caused by the floods along BR-116, in São Leopoldo, metropolitan region of Porto Alegre. – Pedro Ladeira/FolhapressThe executive also points out that it is still not possible to estimate if the final impact will be greater than that recorded during the pandemic.
In total, R$ 7.5 billion were paid only in life insurance for Covid-19 victims, not including the costs of health plans.
“During the pandemic, the sector exceptionally offered broader coverage because this coverage [against pandemics] was not a product offered in the market, and life insurance took on this responsibility.
In the case of the floods, it was a product offered by the market. People chose not to contract it,” Oliveira said.According to the Civil Defense of Rio Grande do Sul, the number of dead due to the floods in the state was 163 on Thursday night (23).
There are still 64 missing persons and 806 injured. The organization points out that 21.5% of the people in Rio Grande do Sul were affected by the tragedy, which impacted 95% of the cities in the state.
According to CNseg, the biggest material impact ever recorded by the people of Rio Grande do Sul so far comes from car policies.
There are 8,216 claims activated, totaling an estimated cost of R$ 557.4 million.The highest number of reported incidents, however, is in residential and housing insurance.
There are 11,396 reported claims, with a potential cost of R$ 239.2 million.”In cars, it is easier to estimate the impact because comprehensive insurance, which more than 90% of people contract, covers flooding. In residential, however, flood coverage is very low,” Oliveira states.
According to CNseg, the impact on agribusiness is expected to be lower than the droughts that the region has faced in recent years.
So far, there are 993 notices of claims, with an estimated impact of R$ 47 million.”The droughts of 2022 were very severe in agribusiness, particularly in Rio Grande do Sul.
However, this number will certainly be much higher as claims are effectively reported and indemnities estimated,” Oliveira said.
Despite the high values, insurance companies have sufficient funds available, with robust technical reserves. “The Brazilian system is fully prepared. Insurance companies have sufficient resources to cover this event,” Oliveira stated.
Due to the tragedy, the sector has extended the expiration of policies in the region and is granting some indemnities without the need for investigation, in a few days.”
