Latest disaster in Brazil drives home the case for microinsurance
Business News Americas, 9 April 2010
As Brazil's insurance companies deal with the fallout of rainfalls that have caused flooding, mudslides, death and destruction, the fact that poor, underinsured areas look to be hardest hit drives home the need for microinsurance, Moody's analyst Rodolfo Nobrega said.
"It's too early to know the extent of the damage, but our guess is that it won't be very hard on the market overall," he said. Henrique Brandão, the head of Rio de Janeiro broker association Sincor-RJ, has put insured loss estimates at about 60mn reais (US$33.8mn).
Death tolls look to exceed 180 from the rains that have battered the state of Rio de Janeiro since April 5, effectively shutting down the country's second largest city at points. Brandão said he expected 8,000 vehicle claims, with as many as 1,500 totaled vehicles.
However, the problem of underinsurance among the worst damaged areas has already begun to emerge, Nobrega said.
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