Floods and Landslides in Brazil – Update 3

Rio Grande do Sul After the Floods

The heavy rain has stopped in Rio Grande do Sul, but the state faces new challenges. Thousands remain homeless, and cold weather is setting in.

Business Impact

We have been offering critical support to our clients during crises. While handling losses as a consequence of the floods we have seen several issues:

• Business Interruption: Insured businesses face lost sales due to clients’ closures.
• Logistics Disruptions: Floods damaged roads, bridges, and railroads, increasing transportation costs for businesses.
• Labor Shortages: Employees displaced by floods are unable to reach workplaces, causing production stoppages.
• Inventory Replenishment: Businesses are expected to incur additional costs to restock depleted inventories.

Government and aid organizations are working on infrastructure repair, economic recovery, and supporting affected families.

Flood Situation Update

• 180 fatalities and 29 missing persons
• 5,446 homeless or without access to homes
• 478 out of 497 municipalities affected
• 2.398 million people impacted
• 15,000 people are still in shelters
• Rescues ongoing in isolated areas

Despite the ongoing challenges, there are signs of economic recovery:

• Automobile sales in June increased 206% compared to May
• Retail sales in June grew 7% year-over-year

The recoveries may somehow be related to the flood impact.

However, low temperatures are expected until July 16, with sub-zero lows in some regions, adding to the hardships faced by flood victims.

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