Following recent floods in the Brazilian state of Rio Grande do Sul, the region grapples with escalating casualties and significant financial repercussions.
According to insurance and reinsurance broker Aon’s weekly cat report released on May 15, national authorities have confirmed that the total economic losses now surpass BRL9 billion ($1.75 billion).
Meteorological Recap: beginning on April 26, Southern Brazil, particularly Rio Grande do Sul, experienced heavy rainfall, leading to extensive multiday accumulation and widespread riverine floods.
The latest report from the State Civil Defense, as of May 15: 149 fatalities, over 800 injuries, and hundreds still unaccounted for. Across 449 municipalities in the state, approximately 3.2 million people have been affected by the floods. Moreover, the floods have resulted in the damaging or destruction of more than 106,000 houses, causing significant losses in the housing sector.
National Confederation of Municipalities (CNM) has been diligently documenting the financial toll of the floods. Their latest data, published on May 15, revealed staggering losses amounting to BRL9 billion ($1.75 billion) since late April. The housing sector has borne the brunt of these losses, accounting for BRL4.6 billion ($890 million). Additionally, sectors such as agriculture, livestock, industry, local businesses, and other services have also suffered notable damages.
With damage assessments still ongoing, authorities anticipate that the losses will continue to rise. The limited penetration of flood insurance coverage in the region suggests that total insured losses could surpass $100 million.
