Client Alerts

Public Consultations No. 14/2026 and No. 15/2026: SUSEP proposes updates to accounting and prudential rules, including Insurance Risk Letters

November 11th, 2026

The Superintendence of Private Insurance (“SUSEP”), through Public Consultations No. 14/2026 and No. 15/2026, has submitted for public consultation draft SUSEP and CNSP resolutions, amending, respectively, SUSEP Circular No. 648/2021 and CNSP Resolution No. 432/2021.

The drafts propose adjustments to the accounting and prudential framework applicable to supervised entities. Their main common feature is the proposal to incorporate Insurance Risk Letters (“LRS”) into the rules currently applicable to reinsurance and retrocession transactions for purposes of accounting recognition and prudential treatment by the ceding entity.

In addition to this common amendment, Public Consultation No. 14/2026 proposes specific changes relating to the Liability Adequacy Test (“TAP”), the Mathematical Provision for Benefits Yet to Be Granted (“PMBAC”), and the terminology used for the structuring and maintenance fee applicable to pension plans and personal insurance products. Public Consultation No. 15/2026, in turn, proposes adjustments to the calculation criteria for Adjusted Net Worth (“PLA”).

Accounting and prudential treatment of Insurance Risk Letters

The public consultations propose the inclusion of Article 2-A in SUSEP Circular No. 648/2021 and CNSP Resolution No. 432/2021 to regulate the accounting and prudential treatment of transactions involving LRS. Under the proposal, references to reinsurance and retrocession would also encompass LRS transactions, according to the nature of the transferred risk.

Accordingly, reducing LRS assets could be recognized as reducing reinsurance or retrocession assets, reflecting the effects of risk transfer on the ceding entity’s equity and prudential position. SUSEP may also establish specific criteria for the identification, accounting treatment, and reporting of these transactions.

The effects of LRS on the TAP and on the economic adjustments to the PLA would follow the treatment applicable to reinsurance and retrocession. If approved, the changes may require supervised entities to review their accounting procedures, controls, systems, and reporting routines.

Changes relating to the TAP, PMBAC, and the structuring and maintenance fee

Public Consultation No. 14/2026 also includes a second set of amendments, regardless of the regulation of LRS, aimed at the treatment of certain pension and personal insurance accumulation products within the scope of the TAP.

The proposal applies to products for which the remuneration of the PMBAC, during the deferral period, is linked to the performance of portfolios of Exclusively Established Investment Funds (“FIEs”), provided that all related funds are invested in such funds and that there is no guaranteed minimum return or value adjustment.

For these products, the draft allows available amounts from the structuring and maintenance fee for pension plans and personal insurance products to be used to offset a potential PMBAC deficit, limited to the amount of the deficit itself. The proposal therefore seeks to allow, for covered products, available amounts derived from the structuring and maintenance fee to be considered in the assessment of any PMBAC deficit for TAP purposes, subject to the conditions established in the draft.

The draft also removes from TAP cash flows relating to the PMBAC of variable-contribution products the cash flows associated with the PDC component and, for defined-benefit products, replaces them with loadings directly related to the products. According to the statement of reasons, this change reflects the new understanding that the Provision for Related Expenses (“PDR”) must be established on a realistic basis for all future expenses. Therefore, the TAP cash flow relating to PMBAC must not include projected expenses. The structuring and maintenance fee may only offset a plan deficit and does not increase the PLA.

The proposal also provides for corresponding accounting and reporting adjustments. The term “management fee” has been replaced by “structuring and maintenance fee for pension plans and personal insurance products,” in line with the terminology adopted by CVM Resolution No. 187, including in the title of Subgroup 333 – Revenues from Structuring and Maintenance Fees for Pension Plans and Personal Insurance Products and Other Revenues (“Rendas com Taxa de Estruturação e Manutenção de Planos de Previdência e de Seguros de Pessoas e Outras”).

If the proposed drafts are approved, entities that market products covered by the new rule must assess the need to adapt their TAP calculation procedures, actuarial controls, accounting records, and regulatory reporting.

Changes to the PLA calculation

Public Consultation No. 15/2026 also proposes changes to the economic adjustments to the PLA established in Article 56, item II, of CNSP Resolution No. 432/2021. The main change is the removal of the cap based on the “effect on the minimum required capital of the underwriting risk portion” from the adjustments provided for in items “d” and “f”, relating to the surplus of provisions compared to the realistic cash flow. The measure partially addresses a request from the National Confederation of Insurance Companies (“CNSEG”) and, according to SUSEP, is not expected to generate significant impacts on the market. The adjustment, however, remains at PLA Level 2.

Item “d” includes, as part of the adjustment, the amount of the Complementary Coverage Provision (“PCC”) established, clarifying the treatment in cases where the PCC is constituted without a deficit in the consolidated result. For capitalization companies, the adjustment relating to unrecorded cash flows (item “e”) permits both positive and negative differences and could therefore reduce the PLA, with the applicable cap remaining only in cases of surplus.

If the proposed drafts are approved, supervised entities must reassess the calculation of their PLA and capital adequacy, paying particular attention, in the case of capitalization companies, to the potential negative effects of the new adjustment.

If approved, the amendments will enter into force on January 2, 2027.

The deadline for submitting comments and suggestions regarding Public Consultations No. 14/2026 and No. 15/2026 expired on November 9, 2026, through SUSEP’s Public Consultation System. The proposals will now be submitted to the Federal Attorney’s Office attached to SUSEP and remain subject to approval before the proposed amendments become effective.

The public consultation documents are available in full on SUSEP’s website and may be accessed through the links below:

Public Consultation No. 14/2026

Public Consultation No. 15/2026

Demarest’s Insurance, Reinsurance, Health and Private Pension team is monitoring this matter and remains available to provide any necessary clarification.