Crime wave prompts some Brazil insurers to deny coverage

Monday, July 17, 2017

Insurance companies in Brazil are beginning to refuse to provide coverage for certain risks due to a spike in crime and violence.

The crime wave is fueled by high unemployment, which is the result of Brazil's deep recession in 2015 and 2016. The economic crisis also limited the resources available to state governments to combat the crime surge, Julio Cesar Rosa, executive director of general insurance federation FenSeg, told BNamericas.

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There are now between 15 and 18 truckloads of cargo stolen per day in the metropolitan region of Rio de Janeiro, said Rosa. Such high frequency of theft makes it very difficult for insurers to put a realistic price on the risk and some decide to simply refuse providing such coverage, Rosa said.

Cargo theft is the biggest problem in Rio de Janeiro while vehicle theft is the main problem in places such as São Paulo, Porto Alegre and Belo Horizonte, said Rosa.