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New circular establishes and consolidates authorization and approval procedures for the supervised market

April 26th, 2024

Novas regras para Seguros de Responsabilidade Civil do Transportador vão à consulta pública

The Superintendence of Private Insurance (“SUSEP”) published SUSEP Circular No. 700/2024, which consolidates the procedures for implementing the following processes regarding supervised entities, reinsurance brokers, foreign reinsurers and representative offices of admitted reinsurers:

  • operating license;
  • initiation of operations in Brazil;
  • holding positions under entities’ articles of incorporation/organization;
  • paying in of capital;
  • conversion of the temporary authorization of companies participating in the regulatory sandbox; and
  • conditions of corporate control structure.

The new Circular is the result of SUSEP’s review and consolidation of provisions on the procedures mentioned above, contained in different regulations, which hindered their implementation and understanding by users.

According to the Circular, these procedures must be:

  • compliant with the rules and definitions provided for in CNSP Resolution 422/2021;
  • supported by the documents listed in the annexes to the circular; and
  • submitted to the general coordination responsible for licensing at SUSEP, otherwise the procedure will be dismissed.

Some of the main purposes of the regulation were:

  • to regulate the procedures, deadlines and documentation relating to acts that must be submitted for prior authorization, approval or notices to SUSEP;
  • to regulate new procedures applicable to foreign reinsurers, such as the change in head offices, in addition to simplifying the registration update rule; and
  • to establish a simplified procedure for the transition from temporary to permanent authorizations, especially for companies in the regulatory sandbox.

Finally, the Circular repeals a series of regulations, as listed in its article 65, and will enter into force on August 01, 2024, introducing the new procedures mentioned above.

Demarest’s Insurance, Reinsurance, Health and Private Pension team is available to provide any further clarifications that may be necessary.