SCOR has reported that the impact on its net technical results from the severe drought on the harvest in the southern part of Brazil “should be just below €200m” for H1 2022.
According to the global reinsurer, this is the Group’s best estimate of the full cost of the event.
SCOR is an active agricultural insurer, and this industry is among the most impacted due to the droughts caused by extremely hot and dry events.
SCOR said: “The need for sustainable agriculture to provide sufficient resources to people is one of the biggest challenges for our society, where insurers and reinsurers have a key role to play.
“SCOR is active in agricultural insurance, working hand in hand with governments. SCOR has a leading position in Brazilian agriculture.”
Being witnessed in North and South America, and particularly in Brazil, these severe hot and dry events have been increasing in frequency and severity over the past few decades, mostly because of climate change, SCOR noted.
