The local regulator in Brazil (Superintendência de Seguros Privados or SUSEP for shorthand) has now issued public consultation No. 14/2025, which is entitled as follows: “reinsurance and retrocession cessions and acceptances and their intermediation, coinsurance operations, foreign-currency operations, and insurance contracts abroad”.
The purpose of this public consultation is to allow various stakeholders in Brazil, and the insurance market as a whole, to opine on a few aspects relating to the new Insurance Act. The new Insurance Act came into force on 11 December 2025. In short, the points under consultation are as follows:
New regulatory definitions
Introduction of definitions for terms like 'reinsurance proposal' and 'cover note' to enhance legal certainty under the new Insurance Act.
A shorter period for agreeing reinsurance contracts
The proposal would see a reduction in the current timeframe from 180 days to 60 days (article 12 of the new Insurance Act).
Retrocession limit adjustment
The current cap on local reinsurers retroceding more than 70% of written premiums may well be lifted. The new model will impose local reinsurers to file a technical report setting out the reasons for retroceding more than 70% of written premiums, no later than 31 March 2026. This will allow further flexibility in the Brazilian market, by effectively removing the existing cap on local reinsurers.
Claims clauses controversy
The proposal sets out SUSEP's most controversial point, which is as follows: the “existence of claims cooperation and claims control clauses is incompatible with the exclusive liability assigned to the insurer by the legislature and, as such, should not be permitted under Law No. 15,040/24.” This point will continue to attract most of the attention and all (re)insurers should keep a close eye on developments locally.
Foreign currency
The proposal also touches on the use of foreign currency for risks placed in the Brazilian market. This will mean that all reinsurance placed in Brazil may well be in a foreign currency. This will only happen if agreed between the parties and unless there is a specific regulation stipulating otherwise. This would be a departure from article 55 of the new Insurance Act, which provides as follows: “[t]he sum insured shall be expressed in the national currency, subject to legal exceptions.”
Any comments on this proposal must be filed by 29 December 2025. A new update will be provided in the New Year although we can expect further developments throughout 2026.
