By Kieran Lonergan
Environmental insurance premiums in Brazil could double next year on the back of stricter oversight from the country's solid waste plan PNRS, according to São Paulo insurance association Sincor-SP.
Under PNRS, companies involved in potentially polluting operations will be required to contract environmental insurance.
Environmental insurance generates premiums of around 28.5mn reais (US$10.5mn) annually, but this could rise to 50mn reais next year, according to the report.
New infrastructure projects in the country will also drive growth in the segment, said Marcio Guerrero, president of insurance association FenSeg's civil liability committee.
"Nowadays many concessions, mainly for highway projects, require environmental insurance, which will likely be one of the drivers of growth in the segment next year," he added.
Environmental insurance remains a niche in Latin America, but with Brazil, Chile, Colombia and Mexico all having announced multi-billion dollar infrastructure programs, as well as growing social and political pressure for greater environmental responsibility, the potential for growth in the segment is considered significant.
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