In 2024, Brazil faced severe environmental events. In April, the southern state of Rio Grande do Sul endured floods lasting several weeks and affecting 478 cities and an estimated 2.3 million people. Direct property damage to housing, businesses, airports, football stadiums, hospitals and seaports was estimated at BRL12 billion, with indirect damage and loss of profits still under discussion but estimated at BRL 90 billion. From July to September, wildfires in the northern states hosting the Amazon forest and an uncommon series of fires in the state of Sao Paulo were seen as a symptom of poor oversight by authorities and light penalties over criminal fires. In September, the Federal Government announced the creation of a climate authority and a scientific committee to articulate and enforce measures to mitigate and avert the causes of extreme climate events. In 2025, new regulations and legislation are expected to increase penalties and liabilities for environmental crimes, as well as reinforcing supervision. The recurrence of severe climate events is likely to impact underwriting and premiums for property insurance products.