Southern Brazil stricken by unprecedented flooding

Since 29 April 2024, the State of Rio Grande do Sul, in the south of Brazil, has been faced with deadly floods caused by record rainfall. The flooding has led to rivers overflowing their banks, making it one of the worst disasters in the State's history.

The death toll as of 14 May 2024 stands at 149, with 124 still missing, while more than 615 000 people have been evacuated from their homes.

Local authorities have reported extensive damage, including destroyed houses, muddy streets and damaged vehicles.

An initial estimate puts the cost of material damage at 7.5 billion BRL (1.4 billion USD).

According to S&P, these floods are likely to lead to a higher demand for natural catastrophe coverage, which in turn will drive up insurance rates for this type of risk.

AM Best believes that the impact of the floods on insurers and reinsurers would be manageable, given their reduced exposure to natural catastrophe risks.