The Superintendence of Private Insurance (SUSEP) published CNSP Resolution No. 417/2021 and SUSEP Circular No. 636/2021, with the purpose of modifying and repealing provisions, respectively, of CNSP Resolution No. 381/2020 and SUSEP Circular No. 598/ 2020, which regulated the first edition of the Regulatory Sandbox in 2020.
The new rules, which were subject to public consultation through Notices No. 18/2021 and 20/2021, are aligned with the news brought by Electronic Notice No. 1/2021 of the second edition of Sandbox. This year, the Regulatory Sandbox procedure was divided into two autonomous stages: the first related to the selection process; and the second related to the granting of temporary authorization to operate under the differentiated rules applicable to selected insurers.
The new Resolution makes the reservation that the selection in the first phase does not generate an acquired right to the granting of temporary authorization, as well as that SUSEP may, during the examination of the company’s authorization:
- suspend the analysis and request any additional documents or clarifications;
- reject the request, in the event of any of the cases defined in the standard, after prior manifestation by the interested parties; or
- file the requirement, in the event of non-compliance with any deadlines stipulated in current regulations or if any request for documents and information made in the course of the authorization process are not met.
In addition, the temporary authorization may also be canceled ex officio by SUSEP, at any time, if the requirements set forth in this Resolution or in specific regulations are not fulfilled, guaranteeing the right to the adversary proceeding.
Once the temporary authorization is granted, the marketing of the product or service by the participating insurer will be terminated as soon as the period granted for operation has ended, or even before its expiration, if the company obtains permanent marketing authorization outside the Regulatory Sandbox or requests the closure of the activity .
Among the amendments provided by the Circular that will apply to the second round of Sandbox, we highlight:
- After being selected, interested parties must submit additional documents, with the purpose of obtaining a provisional authorization to operate;
- Requirement to include the link to the insurance company’s website in the simplified policy legal document (“bilhete de seguro”), so that the insured can have easy access to the information about the insurance plans to which the contracted product is linked;
- The possibility that SUSEP grants a temporary authorization period for marketing shorter than that provided for in the Notice, according to the technical characteristics of the product, including the period for the development of claims.
Demarest’s Insurance and Reinsurance team will continue to follow-up on developments of the second edition of Sandbox and is available to provide any further clarifications that may be necessary.