BB/Vilmar Thewes: coverage of insurance against climate events fell due to rising costs

By Pedro Lima and Eduardo Laguna São Paulo, 04/11/2025 - The manager of sustainable finance at Banco do Brasil (BB), Vilmar Thewes, stated today that the institution has been expanding the use of artificial intelligence (AI) and climate models to price risks in agribusiness, a sector that accounts for one third of the bank's portfolio. "Agribusiness is one third of our portfolio and we have 50% participation in this market. So anything that affects the market will affect Banco do Brasil," he said at a Moody's Ratings event in São Paulo. According to him, insurance coverage against climate events, especially drought, fell from more than two thirds of the portfolio to less than 50% in two years. Even with the climate risk on an upward trajectory, the manager explains, the increase in premiums, tighter margins, and lower public subsidy led many producers to stop taking out insurance. Thewes explained that the insurer BB Seguros is launching a new pricing model based on AI analysis ...