Best’s Commentary: Low Agribusiness Exposure to Help Brazil’s Reinsurers Weather Floods
10 Mayo 2024 - 5:06PM
Business Wire
Due to reduced exposures in volatile lines of business such as
agribusiness, (re)insurance companies in Brazil should be able to
weather any impacts from the recent widespread flooding in Rio
Grande do Sul, according to an AM Best commentary.
The Best’s Commentary, “Low Agribusiness Exposure to Help
Brazil’s Reinsurers Weather Floods,” states that for most
(re)insurers, the biggest impact involves agribusiness, as well as
commercial and personal property and business interruption due to
shortages of basic supplies and damage to public infrastructure in
the country’s southern region. Banks and financial institutions
also will be pressured as they will need to renegotiate terms and
conditions with affected parties.
“Agribusiness is of high importance for the Brazilian economy,
and Rio Grande do Sul is an agricultural center that supplies
approximately 60% of the country’s rice, but insurance and
reinsurance companies have learned from experience to cope with
climate-related events by retaining a smaller share of exposures
and developing more accurate probable maximum loss models,” said
Ricardo Rodriguez Perez, financial analyst, AM Best. “That said,
the flooding is likely to cause a spike in inflation because of the
increase in the price of rice, and consequently, affect GDP.”
To access the full copy of this commentary, please visit
http://www3.ambest.com/bestweek/purchase.asp?record_code=342796.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by AM Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
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Ricardo Rodriguez Perez Financial Analyst +52
55 9085 2708 ricardo.rodriguez@ambest.com Christopher
Sharkey Associate Director, Public Relations +1 908
882 2310 christopher.sharkey@ambest.com Al Slavin
Senior Public Relations Specialist +1 908 882 2318
al.slavin@ambest.com