CNSP Resolution No. 415/2021 and SUSEP Circular No. 635/2021: implementation and regulation of the Open Insurance System

On 08/02/2021, the CNSP Resolution No. 415/2021 and SUSEP Circular No. 635/2021 entered into force, providing guidelines for the implementation of the Open Insurance System, which consists on data sharing and services in a standardized way through the integration of technology platforms and infrastructure.

The CNSP Resolution 415/2021 provides some requirements for this new system implementation, of which we highlight (i) sharing requirements; (ii) responsibilities for sharing; and (iii) rules for technical proposals to be submitted by the participating companies. In addition, it determines who are the participants in the Open Insurance:

  • In case of sharing open insurance data and personal insurance data, mandatorily, supervised companies included in Segments 1 and 2, and, voluntarily, other supervised companies; and
  • In case of sharing movement initiation services (service aimed at the customer’s experience, ordered by the customer), mandatorily, companies initiatiting the insurance service and, voluntarily, supervised companies.

For voluntary participation in Open Insurance, compliance with all provisions of the Resolution is mandatory, including an available interface dedicated to sharing in the system as a data transmission company.

Data sharing comprises steps of customer consent, with authentication phase and sharing confirmation. This procedure must (i) occur exclusively through electronic channels; (ii) have a validity period limited up to twelve months; (iii) and never be carried out through an adhesion contract, a form with an acceptance option previously filled out, or presumably, without the express manifestation of the client. Consent can be revoked by the customer at any time, upon request, through a secure and agile procedure.

In addition, participating companies must submit technical proposals to SUSEP, especially regarding technological standards and operational procedures, standardization of data and services reading and channels for forwarding customer demands, among other aspects indicated in the Resolution.

The Resolution brings the following concepts of the companies present in this new system:

  • Data transmission company: supervised company, participant of Open Insurance, or company initiating an insurance service that shares the data with the receiving company;
  • Data receiving company: supervised company, participant of Open Insurance, or company initiating an insurance service that submits a sharing request to the transmitting company to receive the data;
  • Insurance service initiating company: a corporation, accredited by SUSEP as a participant in Open Insurance, which provides data aggregation service, information and control panels (dashboards) or, as a customer’s representative, with the consent given by it, provides movement initiation services, without detaining at any time the funds paid by the customer, with the exception of possible remuneration for the service, or received by him.

Finally, CNSP Resolution No. 415/2021 provides for the deadlines that must be observed for the phased implementation of Open Insurance:

Until December 15th, 2021 Beginning of data sharing on service channels and insurance products, open supplementary pension plans and capitalization available for sale, which may be carried out in phases, according to the schedule established by SUSEP, observing the deadline of June 30, 2022 for the completion of this phase.
Until September 1st, 2022 Start of sharing personal insurance data, which may be carried out in phases, according to the schedule established by SUSEP, observing the deadline of June 15, 2023.
Until December 1st, 2022 Start of sharing of movement initiation services, which can be performed in phases, according to the schedule established by SUSEP, observing the deadline of June 15, 2023.

SUSEP Circular No. 635/2021 provides for the guidelines established by the CNSP for the implementation of Open Insurance, including the initial structure responsible for governance, technical requirements, operational procedures and the minimum scope of data and services for its implementation.

Furthermore, the Circular also provides for some important deadlines regarding the technical proposals that must be submitted for analysis by SUSEP, as follows:

Until December 15th, 2021 Related proposals:

(i) the channels for forwarding customer requests, the directory of participants and rights and obligations of Open Insurance participants; and (ii) technological standards, operating procedures, telephone and electronic service channels, and insurance products, open pension funds and capitalization, available for sale in the following lines of business: comprehensive home insurance, car insurance, personal insurance, open supplementary pension and capitalization.

Until February 15th, 2022 Related proposals:

(i) to other property insurance not mentioned above, civil liability, credit and financial, under the same terms of the previous deadline; and (ii) the conceptual model of interoperability between Open Insurance and Open Banking.

Until April 30th, 2022 Related proposals

to other insurance products, not provided for within the terms above, available for sale.

Until June 1st, 2022 Proposals related to: (i) procedures and mechanisms for handling and resolution of disputes between participating companies, including those arising from demands submitted by clients; (ii) technological standards, operational procedures for integration, compatibility and interoperability with Open Banking; and (iii) technological standards, operational procedures and standardization of layout regarding data sharing, of branches that already have operations registered in the Operations Registration System (SRO), up to that date.
Until September 1st, 2022 Proposals related to technological standards, operating procedures and standardization of the layout regarding the sharing of movement initiation services related to insurance that already have operations registered in the SRO up to that date.

This is another extremely important milestone for the insurance market, which will have, with Open Insurance, an unique opportunity to innovate in services and experiences offered to customers and, therefore, increase the insertion of its products in the economy and generate a significant market share increase.

This is the time for new players to look at the market, whether as an investor, insurtech and/or as an initiator of services within the scope of Open Insurance.

The entire Resolution and Circular may be accessed through these links.

Demarest’s Insurance and Reinsurance team is available to provide any additional clarifications on the subject that may be necessary.