SUSEP places Notice of second edition of the Regulatory Sandbox and new drafts of Resolution and Circular for Public Consultation

The Superintendence of Private Insurance (SUSEP) has placed for public consultation a new Public Notice for Participation in an experimental regulatory environment (Regulatory Sandbox), as well as drafts of a Resolution and Circular that provide for changes in the rules that regulated the first edition of the Regulatory Sandbox in 2020.

Following the same ideals and objectives of the first edition, the Sandbox will allow the implementation of innovative projects that produce insurance products developed from new procedures and methodologies or existing technologies applied from new perspectives.

In this experimental environment, companies that are approved in the selection process carried out by SUSEP will be able to test, under the supervision of the autonomous agency, new products or alternative ways of providing traditional services.

The Notice for Participation put up for debate introduces some innovations in relation to the first one, which are based on the changes suggested by the new SUSEP Circular and the new CNSP Resolution, whose minutes are also being placed through Public Consultations no. 18/2021 and 20/2021. Comparative tables between the amended drafts and rules can be accessed here and here.

The first change noted in the Notice is the express provision of two stages of participation in the Sandbox: the first, related to the selection process; and the second, regarding the granting of temporary authorization to operate under the differentiated rules applicable to selected insurers. These stages are autonomous and approval in the selection process does not guarantee obtaining temporary authorization, which has its own requirements that must be met by interested insurers.

Another innovation compared to the first edition is the number of projects that can be approved. Last year, SUSEP selected 11 projects aimed at product innovation, out of a maximum of 20 that the respective Public Notice allowed. This year, up to 15 projects may be selected.

Among the eligibility requirements for participation in the Sandbox, the Notice of the second edition innovated by requiring that those interested in participating become a member of the Open Insurance System within four months after the granting of the temporary authorization, in line with other advances in the insurance market that have been promoted by SUSEP.

The draft of the Notice provides that those interested in participating in the Regulatory Sandbox must send the documents provided for in Annex III of the Notice for Participation, in Circular SUSEP No. 598/2020 and in CNSP Resolution No. 381/2020, through the electronic petition available in the Electronic System of Information (SEI), subject to changes in the lists of requirements and documents that will be promoted by the rules placed for Public Consultation, if and when approved.

At first, the technical analysis and scoring of the projects will consider the same criteria adopted in the previous edition, that is: if there is use of new technology and cost reduction for the consumer, if the suggested products or services are different and innovate in relation to that which is currently offered on the market, if they can be sold on a large scale, among other evaluation criteria.

Another important innovation concerns the insurance lines that may be marketed by the insurers participating in the experiment. In this second edition, in addition to the insurance products pertaining to the automobile, property and personal segments, the possibility of offering rental guarantee coverage is also provided for lease contracts with a maximum of 3 months of validity, as well as coverage for pets.

Regarding this innovation, SUSEP establishes that insurers that participated in the 2020 Regulatory Sandbox may request the marketing of products in the aforementioned segments that were not provided for in the previous Notice, provided that the requirements set out in the new Notice are observed and the business plan dealt with in Circular SUSEP No. 598/2020 is duly adjusted.

With no delays or significant changes, the process is scheduled to take place according to the following dates:

  • Enrollment (Term of validity of the Notice): From July 1, 2021 to July 10, 2021
  • Release of the results of the selection process: By August 24, 2021
  • Application for temporary authorization: Until September 3, 2021
  • Notice of provisional compliance with the conditions for temporary authorization: Until November 2, 2021
  • Proof of requirements for temporary authorization: Until January 1, 2022.


Interested parties can send comments or suggestions on the text of the Notice for Participation and on the draft Circular and Resolution by means of an electronic message addressed to until June 17, 2021, by filling in a specific standardized form for each public consultation, according to the following links: Notice for Participation, Draft Circular and Draft Resolution.

Demarest’s Insurance and Reinsurance team will monitor the development of the public consultations through to the publication of the final texts and remains available to provide any clarifications on the subject.