CNSP Resolution No. 491/2026: Brazil establishes a new regulatory framework for mutual property protection plans

The Brazilian Superintendence of Private Insurance (SUSEP) has issued CNSP Resolution No. 491/2026, which provides for the general rules applicable to mutual property protection operations.

Published on May 6, 2026, the resolution implements Supplementary Law No. 213/2025 and introduces a new regulatory framework for the segment. The new rule establishes detailed requirements on corporate structure, governance, capital, solvency, and supervisory oversight, bringing mutual protection schemes significantly closer to the regulatory regime applicable to licensed insurance companies.

Key developments introduced by CNSP Resolution No. 491/2026

Extended compliance timeline for associations and priority processing of administrators’ authorization requests

• Associations will have 24 months from the publication date to comply with the new regulatory framework, extending the 18‑month period provided for in the draft resolution submitted to public consultation (Article 2).
• Associations that do not intend to migrate to the new regime may cease their activities within 180 days from publication, upon formal notice to SUSEP. This mechanism constitutes a regulated market exit (Article 2, paragraphs 1 and 2).
• Administrators that file their authorization requests within 90 days from publication will benefit from priority review. Requests submitted after this period will be reviewed in accordance with SUSEP’s standard process, which may result in longer approval timelines (Article 2, paragraphs 3 to 5).
• The authorization process before SUSEP begins with a request for a technical presentation meeting (Article 12 of CNSP Resolution No. 422/2021). At this stage, applicants must submit the information required by Susep, including a general project description, the geographic scope of operations, the business model, the control structure, and the shareholders’ financial capacity.
• After the first batch of authorizations is published, associations will have a minimum period of 6 months to complete their transition, subject to the overall 24‑month deadline (Article 2, paragraphs 6 and 7).

Structure and licensing of administrators

• CNSP Resolution No. 491/2026 promotes the professionalization of the segment by requiring structural separation between associations and the management of mutual protection operations (Articles 5 and 6).
• Under the new model, operational management becomes the exclusive responsibility of licensed administrators, which must be formed as corporations, with an exclusive corporate purpose and robust governance arrangements (Articles 5 and 8).
• Administrators are subject to prior authorization and regular prudential and conduct supervision by SUSEP (Article 5).

Functional segregation and corporate restrictions

• The resolution prohibits relationships that may compromise the independence between administrators and associations. Administrators may not, directly or indirectly, have as shareholders individuals who perform functions within the associations linked to the groups they manage, nor may they have as shareholders the contracting associations themselves (Article 6).
• Significant restrictions are imposed on related‑party transactions, including an express prohibition on transactions that may generate conflicts of interest or undermine management independence (Article 90).
• The resolution also establishes strict prohibitions on certain financial transactions that could jeopardize solvency or the integrity of group assets, including the granting of loans, advances, or credit facilities to third parties, as well as the provision of guarantees such as surety, endorsement, or acceptance (Articles 88 and 90).

Transfer of groups between administrators

• CNSP Resolution No. 491/2026 details the framework governing the transfer of group administration (Articles 9 to 11), including:
  • the introduction of specific definitions for outgoing administrators and successor administrators;
  • mandatory prior and subsequent notice to participants regarding the transfer of management;
  • safeguards ensuring continuity of coverage, preventing disruption to participants’ protection;
  • the full transfer of data, information, and portfolio history between administrators, ensuring continuity and adequacy of group management.
• The resolution clarifies and tightens administrators’ liability, limiting responsibility to obligations and events occurring during their respective management periods, thus avoiding regulatory or liability gaps following a transfer (Article 11).

Required Minimum Capital, financial capacity, and solvency requirements

• The Required Minimum Capital (CMR) is the sum of base capital and risk capital, which increases progressively with the administrator’s volume of operations (Article 75).
• In its final approved wording, the resolution adopts a more straightforward approach than the draft submitted for public consultation. Base capital requirements are linked to the administrator’s geographic scope of operations, based on the number of Brazilian regions in which it is authorized to operate (Article 76, paragraphs 1 and 2):
  • operations in Federative Units located in a single geographic region – BRL 1,300,000.00 base capital;
  • operations in Federative Units located in two geographic regions – BRL 2,600,000.00 base capital;
  • nationwide operations (no regional limitation) – BRL 4 million base capital.
• Risk capital may be calculated under a simplified methodology, applying a 0.0067 factor to gross contributions collected.
• The resolution also relaxes the economic‑financial capacity requirement, reducing it from 2x to 1.5x the required minimum capital, consequently lowering market entry barriers for new participants.
• Detailed rules are established for the submission and monitoring of a Solvency Regularization Plan (PRS), including mandatory targets aligned with the administrators’ financial performance (Articles 113 to 117).

Operational scope and coverage limitations

• Mutual property protection may be offered exclusively for the following risks (Article 13):
  • property damage to vehicle hulls;
  • third‑party civil liability property damage arising from accidents involving protected vehicles;
  • assistance services linked to the categories above.
• The resolution establishes a maximum period of 90 days for the adjustment and settlement of covered events, counted from the date of notice and the submission of all contractually required documentation (Article 22).
• Participation agreements must require that notice of a covered event be given as soon as the participant becomes aware of its occurrence, under penalty of loss of indemnification rights if bad faith is demonstrated (Article 22, sole paragraph).
• The regulation eliminates any minimum number of participants and instead requires proof of technical feasibility and sustainability through a technical note, with mandatory disclosure of volatility risks in smaller groups (Article 12).

Contractual regulation and participant protection

• CNSP Resolution No. 491/2026 imposes strict standardization requirements for participation agreements, including:
  • detailed minimum content covering guarantees, allocation mechanisms, contributions, risks, and settlement procedures (Article 39);
  • a clear obligation to inform participants about the potential variability of contributions (Articles 25 and 40);
  • requirements for clear and plain language, with prominence given to restrictive clauses; any ambiguity must be interpreted in favor of the participant (Articles 38 and 25, paragraph 3);
  • the express application of the Brazilian Consumer Protection Code (Article 48).
• Associations may act as intermediaries of participation agreements, directly or through third parties, under the administrator’s responsibility (Article 26). In this context, the resolution reinforces requirements relating to registration, oversight, and transparency of intermediary remuneration.

Allocation and contribution mechanics

• allocation periods limited to a maximum of three months, subject to express contractual provision (Article 67);
• creation of a mandatory monthly stabilization contribution (Article 69, paragraph 1);
• detailed definition of allocation components and calculation methodology (Article 69, paragraph 2);
• recognition of the participant’s right of redemption upon withdrawal from the group, calculated based on length of participation, coverage, and contributions (Article 69, paragraph 8).

Governance, internal controls, and audit

• Administrators must implement:
  • annual accounting and operational audits (Articles 95 and 96);
  • an Internal Control System (SCI) (Articles 103 and 104);
  • an independent internal audit function (Articles 107 to 110);
  • a cybersecurity policy (Article 106).

Asset segregation and protection of group resources

• The resolution establishes detailed rules on asset segregation between administrators and mutual protection groups (Articles 81 to 87).
• Assets backing technical provisions must remain fully segregated from the administrator’s own assets and be properly custodied and recorded in dedicated accounts (Articles 84 and 85).
• Free movement of such assets is subject to prior authorization by SUSEP (Articles 86 and 87).

Enhanced supervisory powers of SUSEP

• CNSP Resolution No. 491/2026 significantly expands SUSEP’S supervisory competence, including the power to:
  • suspend new enrollments or renewals in cases of contractual, operational, or prudential irregularities (Articles 51 to 54);
  • require additional audits where risks to the group’s financial condition are identified (Article 126, I);
  • recommend or determine the transfer of administration or termination of groups to protect participants (Article 126, III and IV);
  • initiate special supervisory proceedings (Articles 122 and 123).

CNSP Resolution No. 491/2026 entered into force on the date of its publication.

Demarest’s Insurance, Reinsurance, Health and Private Pension and Corporate teams are available to provide further information and assist clients with compliance and strategic structuring under the new regulatory framework.