Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 426

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 426
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 main risks associated with health
insurance

The risks associated with health insurance
include, among others:

  Variations in cause, frequency and severity of indemnities of  

  Unforeseen claims resulting from isolated risk;  

  Incorrect pricing or inadequate subscription of risks; and  

  Insufficient or overvalued technical provisions.  

For individual health insurance, for which
certain provisions are calculated based on expected future cash flows (difference between expected future claims and expected future premiums),
there are a number of risks, in addition to those cited above, such as biometric risk, including mortality and longevity experience and
the insured’s behavioral risk, which covers persistency experience, as well as interest-rate risk that is managed as a part of market
risk.

Risk management of non-life, life insurance and pension
plans and health insurance

The Board for Risk Management, Internal
Controls, Compliance, Privacy and Data Management Board monitors and evaluates risk exposure and is responsible for the development, implementation
and review of policies that cover subscription. The implementation of these policies, the treatment of claims, reinsurance and the constitution
of technical provisions of these risks are performed by the Superintendent of Actuary and Statistics. The Superintendencies developed
mechanisms, such as the analysis of possible accumulations of risks based on monthly reports, which identify, quantify and manage accumulated
exposure in order to keep it within the limits defined by internal policies.

For life insurance, pension plans and
health insurance, the longevity risk is carefully monitored using the most recent data and tendencies of the environment in which the
Company operates. Management monitors exposure to this risk and its capital implications in order to manage possible impacts, as well
as the funding that the future business needs. Management adopts assumptions of continuous improvement in the future longevity of the
population for the calculation of technical provisions, in order to anticipate and thus be covered by possible impacts generated by the
improvement in the life expectancy of the insured/assisted population.

Persistency risk is managed through
the frequent management of the Company’s historical experience. Management has also established guidelines for the management of
persistency in order to monitor and implement specific initiatives, when necessary, to improve retention of policies.

The risk of elevated expenses is primarily
monitored through the evaluation of the profitability of business units and the frequent monitoring of expense levels. Specifically, for
life insurance and pension plans, mortality and morbidity risks are mitigated through the assignment of catastrophe reinsurance.

Risk Concentration

The
Company operates