Key changes introduced by the new CNSP regulation affecting large and complex risks

By Franc Gozalvez, Marcia Cicarelli, and Alex Crossley

Published 01 September 2026

Overview

SUSEP publishes CNSP Resolution No. 496/2026 relating to Property and Casualty insurance contracts.

CNSP Resolution No. 496 was published on 17 August 2026 ("Resolution 496") in the Federal Official Gazette and provides further clarification on the preparation, structuring, marketing, execution, and operation of all property and casualty insurance contracts. It is important to note that this resolution puts an end to the former regulatory distinction between mass risks and "large risks."

This note does not address all of the main points of Resolution 496, but the following are some of the key points for reinsurers to consider:

1. Single contractual regime: All property and casualty insurance contracts are subject to the same framework for contract formation and execution.

2. Repeal of Resolution 407/21 (affecting previously known as "Large Risks"): Article 53 of Resolution 496 expressly repeals CNSP Resolution No. 407/2021 and ends the distinction relating to the so-called "large risks" in Brazil.

3. Specific risks previously classified as "Large Risks": Chapter III lists the specific risks below. The resolution expressly permits the adoption of a period of up to 120 days for adjusting a claim and settling a covered claim (Articles 28 and 29, paragraph 2). The possibility of applying such extended periods to other insurance products involving greater complexity in claims assessment remains unregulated.

Branch (Chapter III)	Specific risks
Petroleum risks	Onshore/offshore prospecting, drilling, production, storage, and refining operations, including liability and financial losses (Arts. 32-33)
Named and operational risks	Named risks (listed coverages) or operational risks (all risks) with LMG exceeding R$ 15 million (Art. 34)
Global bankers blanket	Losses of financial institutions involving cash and assets (theft, robbery, destruction, etc.) (Art. 35)
Aviation risks	Hull and liability coverage for hangars/airport operations and possibly including coverage for defence costs, fees, and fines, with provision for free choice of counsel (Arts. 36-37)
Maritime risks	Vessel hull coverage and rules for port operators and covered port operations (Arts. 38-40)
Nuclear risks	Property damage and liability arising from nuclear energy activities; same approach to defence costs/fees as aeronautical insurance (Arts. 41-42)
Domestic and export credit – legal entities	Coverage for losses arising from insured and unpaid receivables, when the insured is a legal entity (Art. 43)

4. Claims adjustment and settlement of covered risks: Except for risks governed by Chapter III, the period for adjusting and settling a covered claim is up to 30 days (Articles 28 and 29). Claims adjustment and settlement reports, together with their annexes, constitute documents common to the parties and are subject to supplementary regulation by SUSEP (Article 30).

5. Product Registration: All contractual conditions, including terms and clauses drafted and negotiated on a customised basis to meet the specific needs of the insured or beneficiary, must be registered prior to commercialisation.

6. Notifications through the Broker: Notifications must be made by appropriate means and be capable of proof of receipt. Articles 22 and 45 provide that such notifications may be forwarded to a broker or to a representative of the recipient, within the limits of their respective authority, but do not specify how such authority is to be evidenced or verified.

7. Application of Brazilian Law: CNSP Resolution No. 496 reinforces the trend already observed in CNSP Resolution No. 494 of strengthening the application of Brazilian law to insurance contracts with a substantial connection to the country. Article 3 mandates the exclusive application of Brazilian law and rules issued by the CNSP and SUSEP in the following cases: (a) contracts entered into by an insurer authorised to operate in Brazil; (b) where the insured or proposer is resident or domiciled in the country; and (c) where the assets underlying the insured interests are located in Brazil.

8. Adaptation period: The resolution was published and entered into force on 18 August 2026 (Article 54). In practice, insurers and other market participants must, before 5 January 2027, complete a review of how they intend to adapt to the new resolution and ensure that the required clauses are properly drafted, while also monitoring supplementary regulations issued by SUSEP affecting these risks.

CNSP Resolution No. 496/2026, as issued by the local regulator, introduces a new grouping of risks and should provide the reinsurance market with guidance as to how these risks may justify an extended claims adjustment and settlement period of up to 120 days. It remains to be seen what supplementary regulations SUSEP will issue in relation to these risks and how the market will adapt to these changes in Brazil.