CNSP Resolution No. 408/2021: Consolidation of rules applicable to the use of remote means in insurance, open complementary pension fund and capitalization operations

On July 2, 2021, the National Council of Private Insurance (CNSP) published CNSP Resolution No. 408, establishing rules for the use of remote means in operations related to insurance, open complementary pension plans and capitalization, repealing CNSP Resolutions Nos. 294/2013 and 359/2017.

The new rule, which was placed for Public Consultation through SUSEP’s Public Notice No. 4/2021, defines the minimum requirements and guidelines that must be followed by insurers during the application of digital technologies in their operations, in order to enable a sustainable, sound and transparent environment for consumers.

Among the main changes brought by the Resolution, we highlight:

• Proposals for insurance and open complementary pension plans, which previously could only be carried out by means of a login and password or digital certificate, can be formalized through a secure digital system, provided that it is accepted by the parties as valid and enables proof of the document’s authorship and integrity, without any limitation of the means of identification of the proponent and technological solutions equivalent to the signature;
• The consumer will be able to contract through digital means, and all the documentation related to the transaction will the issued, sent and made available by remote means, provided that the client is guaranteed the possibility of printing or downloading these documents and that they expressly state the date and time of issuance;
• The contract must be terminated by the same digital means used at the time of contracting, precisely so that this procedure does not result in greater cost in time and complexity for the client than that required for contracting, except if an alternative and equivalent remote means for terminating the relationship is granted;
• Possibility of contracting insurance remotely through the issuance of an insurance ‘ticket’ (a legal document issued by the insurer that replaces the insurance policy).

The specific rules for the virtual contracting through the issuance of an insurance ticket were addressed by the Regulator in CNSP Resolution No. 413, which was also published on July 2, 2021 and contains express authorization for the request of the ticket’s issuance by remote means, provided that the company complies with all the other requirements established for the matter.

Among the technical requirements that must be complied with by the supervised companies during the use of remote means in the insurance, open complementary pension fund and capitalization operations, the Resolution establishes the following:

1. the integrity, authenticity, non-repudiation and confidentiality of information and electronic documents must be maintained;
2. confirmation of receipt of documents and messages sent by the supervised entity to the client or, when applicable, to the intermediary; and
3. provision to the client of the protocol and information provided for in the legislation and regulation in force regarding requests and procedures related to the contracted product or, when applicable, to the intermediary, for any requests and procedures related to the product.

The requirements of integrity, authenticity, non-repudiation and confidentiality of the information and of the electronic documents are also applicable to reinsurance and retrocession operations performed using remote means.

The full text of CNSP Resolutions Nos. 408 and 413 can be accessed through the respective links.

Demarest’s Insurance and Reinsurance team is closely monitoring news related to these Resolutions and is available to provide any further clarifications on the matter.