Brazil's insurance sector grows with new legal framework and climate‑driven risk reforms

A year after Brazil enacted a new legal framework for insurance, the market is seeing a sharp rise in demand for optional‑risk (Open Fac) coverage. The reform separates policy limits, raising the global Maximum Guarantee Limit and prompting insurers to seek additional financial and technical capacity. XS Global, a leading managing general underwriter, reported a 75% increase in submissions, a 38% rise in production and a 45% jump in closed policies in the first quarter of 2026 compared with the same period a year earlier.

At the same time, climate change is forcing insurers and brokers to overhaul risk‑management practices. Mapfre highlighted the impact of recent extreme weather in Rio Grande do Sul, where total economic losses were estimated at roughly R$ 100 billion, yet only R$ 6 billion were covered by insurance. The event generated about 58 000 loss notices, including 922 large‑risk claims that resulted in more than R$ 3.2 billion in payouts across airports, industrial complexes and logistics hubs. The industry is revising underwriting models, reinsurance programs and coverage limits to adapt to the new climate reality.